3 Reasons Why You Are Smarter Than Most Professional Economists
Understand economics, quit getting suckered and start getting your moneys worth
Do you understand economics? Well, if you dont, understand this:
You are NOT stupid.
As a financial advisor, I continually study economics. This subject, in modern terms, has been complicated beyond all comprehension, even to those who work in the field as their daily activity.
Why? Well if the population understood how simple the subject is, then the Powers-that-be wouldnt be able to get away with the nonsense that passes for economic necessity!
Lets check your economic knowledge:
1.Do you earn money? Great.
2.Do you spend money? Fabulous.
3.Do you understand the concept of getting your moneys worth? Very Good.
Now, can you recognize the difference between getting your moneys worth or not? You can? Then evidently you know more about economics than most professional and academic economic advisorsjust look around at the results!
Economics is a simple system of exchange. One produces a product or service that someone else wants. He then exchanges that product or service for something he wants. This is barter.
To make barter easier, we come up with paper and coins or plastic that represent the value of these goods and services so we dont have to lug around all of the stuff we producewe can just carry a wallet or purse with these pieces of paper, metal and plastic that we agree have value. This is money.
For an economy to exist, everyone must produce a product or service that they then exchange with others for the things they need, all done through this medium of money (in modern times). When someone sells a good or service for more than what it cost him to produce it, a profit is made. These profits are then reinvested in more production and wealth is created.
The overall prosperity of the group rises since more is being produced than is consumed, whether the group is a household, company or nation.
Pretty simple.
Now, what makes it so complicated?
While some of us are producing and investing our profits into more production, there are those who do not produce, yet demand the benefits and rewards of production.
There are plenty of examples of this: the individual who is accepting checks from the government for nothing in return; the company that produces an inferior product, yet survives because of government subsidies; the office worker who doesnt give his boss an honest days worth of labor; or the con man who defrauds for his daily bread.
It is these elements in the economy, no matter what form they take, that destroy the balance of exchange in the society. When the productive are being enforced to invest in unfair taxation, social security, bail-outs and other forms of non-production, then its only a matter of time until we ALL have a lowered standard of living.
Look around for yourself. Analyze the exchanges in your life of value for value, or value for no value. There are a million reasons why the non-productive should receive value and why the productive must provide it. NONE of them are really true.
The complication of economics makes it so we cannot identify and recognize these simple laws of production and exchange. It justifies the penalty for the productive and the reward for the non-productive.
ANY ideology, comment, perspective or opinion that promotes complexity of economics and the belief that those who produce should support those who dont is an enemy to your present and future prosperity, no matter what you do for a living or your political, religious or ethnic orientation.
So, what do you do? Produce like crazy and make a lot of money. Spend money on those things that provide more value to you and your family, company and society. Analyze where your money is being spent and cut off the flow of money (as much as possible) to those things that provide less value than the cost. The results will become apparent.
Now, do you think you understand economics?
Yeah, youre a lot smarter than you think.
by: P.Christopher Music
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