“Man is the creature who does not know what to desire, and he turns to others in order to make up his mind. We desire what others desire because we imitate their desires.” -Rene Girard
“There’s no such thing as a free lunch.” -Milton Friedman
“Show me the incentive and I’ll show you the outcome.” -Charlie Munger
“Must you value what others value, avoid what others avoid? How ridiculous! Other people are excited, as though they are at a parade. I alone don’t care, I alone am expressionless, like an infant before it can smile.” -Lao Tzu, Tao Te Ching (Stephen Mitchell translation)
Economics is the study of how we make choices in a world of scarcity.
Scarcity means we have unlimited wants, yet limited resources. Therefore we have to make tradeoffs.
Tradeoffs mean choosing one thing over other things (i.e. sacrificing). When we do, there is an opportunity cost to that choice.
The opportunity cost is the value of the next best alternative, and it can be calculated.
Are you with me so far?…
Good.
Here’s where it gets really interesting…
YOU get to decide. Both what you pick and the value of what you gave up.
So, a question for you…
What do you value?
And is it what the world wants you to value or what you and you alone, value?
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