Inflation, savings, and the Economics of Chuck E. Cheese
I learned this lesson early in life and I’ll share it with you. This is a sad story that reflects the state of our current economy, however, I should have seen it coming since this lesson was taught me at a very young age.
As a kid, Chuck E. Cheese’s was the place to go. I’d probably go 2-3 times a year, usually for a soccer party or a birthday party. That was an attractive and seductive place because of all the games and the possibility of making it big. Winning that “big” prize. Now that I look back at CEC, it can be equated to a big economics experiment.
The Goal: Earn as many tickets as possible using as few tokens as possible to trade in for the best prize.
Since this was my goal, I would look down on those kids playing the video games, air hockey, and all those other games that gave no tickets. In fact I thought it was irrational to even play these games because all you get is zip, nadda, zero tickets after receiving a minute or two of “fun.” Instead, I looked at games like skee-ball, whack-a-mole, basketball, and those games of skill that not only required great hand-eye coordination, but that rewarded your skill with tickets. In the whole CEC economy, it wasn’t how many tokens you have at the end of the day, it was all about the tickets.
It was on one occasion that I came up with a brilliant plan. Rather than purchase some weak prize with my 150 tickets, I decided to forgo the lower end prizes and save the tickets for my next encounter at CEC for something bigger and better.
The following year, I came back with the 150 tickets thinking I was big time. I was going to make it big, buy myself a higher end prize. It was then that I realized that saving might not be the best option. Not only did they increase the number of tickets for the bigger prizes, they also increased the rewards so that a single game of skee-ball could result in you getting 150 tickets. My savings of 150 tickets was equivalent to about 15 tickets of a year ago. The best I could buy was probably some sticker or friendship bracelet.
The increase in ticket supply only amounted to robbing me of my savings by “rewarding” those kids who knew nothing about savings… those who only knew how to spend. Well, the system goes on today, CEC continues to make more money, kids continue to play and have fun, and parents, unfortunately, will continue to enable this lifestyle.
This, my friends, is the lesson in economics I learned as a kid (or failed to learn). Saving is genius… unless what you’re saving is being supplied by CEC.
Therefore, invest what you earn wisely.
Matthew 6:19-21 Do not store up for yourselves treasures on earth, where moth and rust destroy, and where thieves break in and steal. But store up for yourselves treasures in heaven, where moth and rust do not destroy, and where thieves do not break in and steal. For where your treasure is, there your heart will be also.
