Now, economics is a highly misunderstood subject, much like philosophy. It has been relegated to universities or pundits on media news and site making ‘bold’ predictions about the stock market. The more sensational the prediction the more publicity (credibility) the economist gets. The concept of economics has been reduced to ‘financial analysis’ and numbers crunching and is now completely devoid of all principles surrounding sound money. It has become something like mathematical and intellectual masturbation meant to confuse the common man and disinterest him from the subject.
Now, don’t get it twisted, people do tune into these financial analysis airings and conferences and listen to so-called economists wax poetic about how the market is going to sour indefinitely or collapse and doom us all with the next Great Depression. I’ll admit I’m not sure whether they believe the drivel coming out of their mouths or they are just being paid handsomely to deceive the people into believing they are being informed by listening in to the latest prediction about the stock market.
The concept of economics has become something like “The Price Is Right” or “Jeopardy” where people place half-ass bets with no context as to what they are betting on looking to make a quick buck. There isn’t a single ounce of principled bones in their bodies as instant gratification oozes out of the stock exchanges as everyone is trying to become the next Warren Buffett overnight, which is impossible because an 80 billion dollar net worth doesn’t just happen overnight. It takes decades of sound money principles and investment decisions that focus on the long term and involves no instant gratification.
People have long forgotten what the nature of an economy truly is and how it affects all aspects of our lives. They have lost the understanding required to realize society’s economy is based on production value rather than monetary value. Of course, this is the illusion the corporate and govt bodies instilled in the people so they can fleece them out of their hard-earned money and gain absolute power over the economy.
Being able to inflate the money supply at will, the govt has created and maintained the illusion of easy money and instant gratification. The principles of economics rely on production value, a free market, and hard money. Production value meaning how useful the good is to greater society. Free market as in the people exchanging and selling goods decide the value of said good and maintain ownership over that good. Hard money being a high stock-to-flow ratio which makes it salable across time and space, meaning the existing supply is greater than the new supply being mined or produced which makes it hard money in the first place.
Without proper understanding of economics, we would live terrible lives. Oh wait, we’re already there. Think about it, fiscal responsibility is essentially individual economics. If a man saves his money, invests it, lives within his means and doesn’t spend recklessly, does everything he can to ensure the increase in his money’s value and follows sound money principles he has a sounder understanding of economics than ninety-nine percent of people.
How so? Because he’s able to set aside instant gratification to build something that will last. Economics isn’t about making money but cultivating value. Money is simply the manifestation of value; in order for one to make money, they have to produce something that is worth paying for. If not, they will make no money. Also, they must understand that value is based on production and production is based on the quality of what is being produced. Quality, not quantity.
Things like mass production are only useful to society is the quality and consistency remains the same. If the quality changes then the worth of what is being produced changes. Quality and consistency are the most important principles of production, there’s no way around that.
If you produce something shitty, you’ll get shitty customers. Plain and simple.
When you produce something of quality, you get quality customers. When you get quality customers, you make more money. When you make more money, you can better your business. When you better your business, you make more money and get more customers. When those two things happen you have more take home profit. When you have more take home profit you can better your lifestyle. When you better your lifestyle your quality of existence and decision-making increases (provided you follow sound money principles). When that happens life becomes more awesome for you.
Understanding economics has a compound effect most people overlook. When you understand where value comes from and how to cultivate it. How money really works and its actual utility. How value is the wealth you generate from within and express to the world by way of your product. How money is a manifestation of value.
When you understand this, then you understand economics and what it actually means. You stop listening to analysts and start following your judgment for what you want in your life. You stop worrying about the world and start focusing on yourself. You finally start to dig yourself out the hole and turn your life around.
Hope this helps,