The Real Economic Experts

"What God desires is here (head), and here (heart), and what you decide to do everyday, you will be a good man...or not."
--Hospitaller (Kingdom of Heaven)

People state that they know little or nothing about economics. But they likely know more than they think or admit to.

Economics involves the production, distribution, and consumption of goods and services. These goods and services are scarce resources and therefore need 'economizing.'

Economizing is a behavior that we all engage in. Over time, we all gain economic skills because we must allocate scarce resources according to our taste preferences.

What people probably mean is that they know little or nothing about economics as taught in school. This is probably a good thing rather than a detriment. Economics as a science has made little progress in the last few decades. In fact, there is an argument to be made that the drivel filling most college economics textbooks constitutes a digression in the formal field.

Mises (1949) quite aptly titled his magnum opus in economics "Human Action." Contrary to popular belief, complex mathematics is not central to economics. Instead, economics centers on human behavior. Even core concepts like 'supply and demand' are constructs that reflect the actions of individuals done in the context of resource scarcity.

Next time you encounter an economic problem being discussed by so-called experts, frame the problem in your terms. Ask yourself how the situation applies to what you do when you are economizing.

Chances are, you'll be further ahead than those who stay glued to 'expert' economic analysis.

Reference

Mises, L. 1949. Human action. New Haven: Yale University Press.