ECONOMICS-Eco what? Yeah it's a GREEN thing.
Hi, the first question is why am I doing what I'm doing? That's easy. Economics seems to be the name of the game today.
Second question: don't I understand finances? Yes, but that's not always related to Economics. Notice I capitalize THE WORD-because it's become such a mystery subject to so many.
Why? Well, my theory is that if you want the power to tell people how to think, act and live, you have to create areas that seem beyond their knowledge. It's like a box and only "Economists" (people who study all the areas) can lead folks out of the Economic Jungle of ignorance box so that a happy, fulfilling life can be achieved. PULEEZE-Give it a rest!
It takes some genius to create Economics but it doesn't take genius to figure it out. So, I am learning the basics of the Capitalist system as set forward by our forefathers and constantly being updated by our "post fathers", who have made simple bartering a thing called ECONOMICS. How will I do this? Read, read, read!!! How well will I do it? That remains to be seen.
Let's begin with simple trade although bartering (exchanging material goods)was the real beginning of all commerce.
We'll have a garage sale. I have some terrific stuff (at least I think it's terrific) and I will put it out in my yard with "yard sale" sign. I post a few signs down the street as well. I put an ad in the newspaper and set hours and a day for the sale. Now we've opened our own "business". We call the money spent as "the cost of doing business and advertising"
OK. on the day I open the yard sale, my kids and I set out my treasures as attractively as possible making sure they are all dust and stain free. We place a price on each one with a willingness to barter the price later. I promise the kids a nice meal out for helping me. This action represents "labor" and "salary" and since they are unskilled at this, the salary is minimal. We are bartering time against nice hamburger food.
The day progresses, the kids get bored and I show my treasures to the people who stop. My neighbor loves the Foo Dogs and offers to trade me a garden fountain for them. Good barter for both of us. Others who come by offer money and soon the day is done. I have cleared out a lot of things, gained money, and others have benefited from it by getting my "stuff" at a good price. What I have left unsold I give to charity and count that as part of the "cost of doing business".
I subtract the amount I expended on "cost of doing business" from what I gained (in both material objects (the fountain) and money). If I have more than I spent that is my "profit". If I have less than I spent that is my "loss". If I have profit I will want to do another yard sale but if I have loss or if I just "break even" (no profit-no loss) I probably won't waste my time on another yard sale.
Simple, satisfying transactions all and practiced by most citizens sometimes and some citizens regularly. Commerce. I want to sell what I have--you want to buy it and so we exchange goods and/or money. See we're already into Economics! So what's with the learning curve?
Hey, you forgot the manipulative genius who discovered the following curves: supply, demand, indifference (show graphically whether you choose A or B is no problem); money supply ; goods and their transit; expanding markets; megaliths; political needs; global expansion; employees who keep track of who's bartering what, where and how and their profit; and on and on "ad infinitum" (Latin for "all that jazz").
Don't expect a blog every day but I will get back with new information I've put together.
I hope to use the above simple example of the yard sale several times to clarify and expand our knowledge of Economics!
CHEERS, CONNIE
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