A Classroom Scenario

Scenario:

I am a first grade teacher, lover of liberty, and God follower . So my daily questions revolve around how I can combine these important things into all aspects of my life. School for me is not just about teaching kids to read, write, and do math. It is about doing life. How do you instill a love of liberty and self-worth into kids to hopefully carry into the next generation?
So let's look at this scenario:

We learned about wind today in our study of weather. Naturally of course, we made wind socks at the end of the lesson. My kids are arranged in desk clusters. Student A comes up to me crying and as I ask what's going on , he proceeds to tell me Student B has destroyed his windsock. Sure enough, there lies the crumbled, torn up wind sock on his desk. Well that escalated quickly. I ask student B what happened and he informs me that student A was"being mean to me."

So pausing here. So student B responds to Student A apparent rude behavior by destroying his stuff. Interesting.

Now, comes me (or you) as the teacher in the scenario. I want student B to understand that 1) doing something bad in retaliation to someone being bad to you does not change anything and 2) that destroying someone else's property is a violation of natural property rights. So what to do? I could allow student A to crush the other student's windsock. It doesn't feel nice. Teach some empathy. Or does this violate my first objective? I could have student B apologize, but that doesn't fix the windsock. Could student B make a new one for student A?
Thoughts, ideas, suggestions?

Fast forward to later that day when they some how end up as math partners. Student A refuses to work with student B. Understandably so. Here in lies the opportunity. Student B figures out that treating people a certain way leads to isolation and no one "to do business with." Student A also gets a lesson about second chances and learning to be a bigger person to accomplish a task.

So liberty lovers and truth seekers- what are some applications of this for those of us in the real world?

*Photo courtesy of a first grader. They love to give me pictures