Descriptive Nature
I’ve always been interested in how things work.
As far back as I can remember, I would take things apart, as much as I could, just to see what was going on.
As an adult, during the golden age of information, there are plenty of online educational resources for learning.
It’s very relaxing to watch a college level lecture on plenty of different subjects without needing to worry about passing a test.
One particularly interesting subject is the area of economics.
And economics does have to very broad categories.
These aren’t categories that you’ll find any textbook.
These are categories you will find going back to the beginning of time.
The two categories, or schools of thought.
The prescriptive view vs. the descriptive view.
This idea has been the core battle of humanity since we invented agriculture.
Truth vs. Opinion
From the realm of economics, this is easy to see.
One is the prescriptive view.
To USE economics as a law of government and politics.
What people SHOULD do, according to the rulers.
The rulers of every society have the belief that they know BEST.
That they know better than anybody else what people SHOULD be doing.
Then there is the descriptive view.
Science is, at it’s core, descriptive.
It DESCRIBES the way things happen.
Nobody Knows Why
It doesn’t try to answer WHY things happen.
Similarly, economics describes human behavior.
One of the easiest “laws” of economics is the law of supply and demand.
If something exists in abundance, AND not many people want it, it will be very cheap.
If something is very scarce, AND it is in high demand, it will be VERY expensive.
This is not based on what SHOULD happen.
This is based on human nature.
Supply and Demand Basics
Suppose you had ten things.
And 1000 people wanted to buy one of your ten things.
Would you have a raffle, and sell them for $1 each, because it was the RIGHT thing to do?
Or would you sell them to the highest bidder, and maybe sell each one for $10,000?
To make this even clearer, suppose each buyer REALLY wanted to buy one for $10,000.
So when you made the trade, them giving you $10,000, and you giving them the item, both of you were VERY happy.
Not Fair?
Sure, there would be some angry people.
People that wanted to buy one for a dollar.
They would say it’s not fair.
But is that correct?
Is it really NOT fair?
This is a common response when we look out into the world, and we don’t get what we want.
But when you look at the world through the lens of common sense economics, everything makes sense.
If YOU are in low demand, you won’t be able to “charge much” for you.
Scarcity Life
Jobs, girls, guys, friends, lovers, etc.
But if you are in HIGH demand, you’ll able to charge a lot more.
How do you INCREASE your value?
First, on the inside, through your honest beliefs.
Then on the outside, through your behavior.
Learn How:
Negative Belief Crusher
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