When our kids were young they loved to play the game Monopoly. Of course, each kid hated losing and hated having to depart with cash when landing on a property owned by someone else. Most of all the kids hated going bankrupt and losing the game.
As I continue to grow my wealth and frequently check on my portfolios it occurred to me that there is an amazing parallel to the game of Monopoly to modern day finance. There will be more on this point later but it got me thinking about how the game got started so I asked AI and here is what is responded:
The Early Years: Lizzie Magie and the Landlord’s Game
The game of Monopoly was invented by Lizzie Magie, a Quaker woman from Illinois, in 1903. Magie designed the game to demonstrate the negative aspects of monopolistic practices and to promote the idea of a single tax on land to fund public goods. The game was originally called the “Landlord’s Game” and was played with a set of rules and properties that were designed to illustrate the consequences of unchecked capitalism.
The Game’s Early Development
Magie’s game was played by a group of friends and family, and it quickly gained popularity in the United States. The game was played with a set of properties, including Park Place, Boardwalk, and Mediterranean Avenue, which were designed to represent different types of real estate. Players would roll dice to determine how many spaces they could move, and the goal was to accumulate wealth by buying and selling properties.
The Game’s Evolution
In the 1920s and 1930s, the game underwent significant changes. Charles Darrow, a unemployed man from Pennsylvania, claimed to have invented the game and began selling it to Parker Brothers, a board game manufacturer. Darrow’s version of the game was called “Monopoly,” and it dropped the original goal of promoting a single tax on land. Instead, the game focused on accumulating wealth and bankrupting opponents.
The Game’s Popularity
Monopoly became a huge success, and it quickly became a staple of American culture. The game was played by millions of people, and it was often used as a way to teach children about business and finance. The game’s popularity was fueled by its simplicity, its social aspect, and its ability to be played by people of all ages.
The Game’s Controversy
However, the game’s success was not without controversy. Many people felt that the game promoted a negative view of wealth and class, and that it perpetuated the idea that the wealthy were superior to the poor. Others felt that the game was too complex and that it was not a good way to teach children about business and finance.
The Game’s Legacy
Today, Monopoly is one of the most popular board games in the world, with millions of copies sold every year. The game has been translated into many languages and has been released in many different versions, including themed editions and special editions. Despite its controversy, Monopoly remains a beloved game that is enjoyed by people of all ages.
As I reviewed my investment portfolio this weekend, I couldn’t help but think back to the days of playing Monopoly. The goal of monopoly is to run around the board (work) and land on empty spaces (opportunity) and buy a property (invest) and then collect rent from other players (income). If you fail to capture enough properties throughout the duration of the game, you’ll likely lose and go bankrupt.
So what’s in my portfolio now? Well I have energy stocks which means any time anyone uses electricity or fills up their car with gas or uses natural gas to heat their home or cook, I am collecting dividends (rent). I also own insurance stocks so every time a person pays for their auto insurance, home owners insurance, life insurance or other insurance, I collect dividends (rent). I also own food stocks so any time someone buys meat or groceries I am collecting dividends (rent).
Ironically, I think the game of Monopoly is too limiting the way it’s designed now. It focuses primarily on real estate but it should be expanded with the ability to buy blocks of stock shares in firms, bonds, gold and other investments. Perhaps I’ll create my own improved version of this game down the line somewhere as I believe the copyright for the game has expired so it’s public domain.
With school letting out soon across the country for the summer, it may not be a bad idea to get your gets started in learning how to become a landlord and start collecting rent.
Share The Wealth
What do you think, is Monopoly a positive or negative way to teach kids about becoming wealthy or overcoming adversity?