Weird question, am I right? Well, when ya think about it, the question and its answer (below) actually make lots of sense!
“Economics is the study of how we manage and allocate scarce resources” ← said every Economics textbook EVER!
You’ve read that sentence a plethora of times by now, and frankly, today won’t be your last! You see, whenever you begin your principles courses in all things associated with the economy, your professors, teachers, etc have to lay the basis/foundation of what economics really is and that sentence does JUST that!
Just think about it…
When you turn on your TV, what do you see? Is it the latest July 4th sale at your local Nissan dealership or maybe it’s a Target commercial featuring the cutest look-a-like Birkenstocks? No matter what the tube is televising, after seeing those items, you’re immediately enticed – aching and yearning for more.
So now what?
Well, because of darn Comcast, you’ve now seen what ya want and you know your money is suited and booted and your tank is full. Time to go splurge, right? Right! Faster than Usain Bolt, you jump in your turtle waxed Benz and rush to Target with eager anticipation…only to find that your shoes…those fake Birkenstocks you just HAD to have are, in fact, there, but NOT IN YOUR SIZE!!!!!! (Insert Vincent Price scream here)…With angst and much fury, you set your sites on forging your way towards the Nissan dealership (because that new car scent makes EVERYTHING better!). You arrive, but the July 4th salesman informs you that the last Versa was JUST purchased by some lady who also wears a size 9 in look-a-like Birkenstocks!!!!!
You freak…which is pretty much what EVERY economist would do as well…Why?
Well, the same principle applies to economists as it would for you. Your shoes and car, just like the world’s resources, were scarce. Yes, there were a few shoes there, but not a lot – especially in your size. And the car – they were out of those completely. Resources such as water, trees, and even money are all pretty much the same. We have some, not a lot, and the ones we do have usually have a tendency to be nonrenewable. Yet people desire more~n~more of them regardless. So what do economists have to do? What role do we play and how does this pertain to economics per se? Well, we are basically the liaisons – the mediator between the two. It is our role to get these resources and others allocated to you and the other 7.9999 billion people around the world despite the fact that they are limited. Easy Peasy, right? With God’s help, it is! 😉
But what else? Does economics encompass much more?
For instance, when the Euro gets stronger, does that affect you and me? If Obama issues a mandate enforcing a raise in the minimum wage offered across the nation, does that impact only those workers on that particular pay scale? Is Top Ramen affected when you feast on steak instead of their Chicken flavored noodle delight? And if there’s a drought in Florida, are the Floridian farmers the only ones in despair? These questions and so many more are ALL a part of economics no matter how you slice it. Economics is everywhere! Economics stems from what’s going on abroad all the way to your decisions you make while canvassing the aisles at your local Dollar Tree. We simply can’t get away from it, but honestly, why would we want to? 😉
So how was that? Ready for your next lesson? In my next installment of The Chocolate Doctorate, I’ll be fine tuning the ten principles of economics, so stay tuned, Shimmies!
Remember to Live Life, Beautifully <3
– The Chocolate Doctorate