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.


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