What is economics?

This morning while reading Dr. Thomas Sowell’s book “Is Reality Optional”, I came across this passage of what best describes economics in the most simplified way.

He has held steadfast in this explanation for multiple decades and gives everyone a great understanding no matter what level of education or standing in society you are in:

The basic premise of economics is scarcity: There is never enough to satisfy everybody. That means there is no free lunch, no “solutions” but only trade-offs.


Apply this theory to your own finances, current government spending or just the actual marketplace and you will see what he means.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s