Friday, May 06, 2005

Economics, we knew it before we realized it...

Economics is fun to learn, if learned properly. To make it fun for others to learn, I help them see that they already know more than they realize. When I was a child I remember going on a vacation to Florida with my parents, brother, and cousin. Because there was five of us my parents decided to rent a van to give us more space. However both me, my brother, and cousin saw the opportunity to bring more of our things (floats, games, toys, etc..) with us because we had enough space in the van to do so. My mother joked about "renting a bus next time", and my cousin wisely replied: "that still won't work...everyone will just bring more stuff".

Though he was only a teenager, my cousin understood one of Capitalism's Truths. When the cost changes, so does peoples' behavior. What happened on our vacation is what happened to the gas stations in the 1970's. The government artificially held the gas prices low, so everyone decided to take advantage of it and buy more gas; that's why waiting lines got to be the norm in those days.

Now can you see that you knew Capitalism before you may have realized it?

"Anyone who stops learning is old, whether at twenty or eighty. Anyone who keeps learning stays young. The greatest thing in life is to keep your mind young." - Henry Ford