Monday, May 7, 2012

Here is Your Ph.D in Economics*

*And I'm not even gonna charge you

Today, class, we will take about 60 seconds to instruct you in the field of Economics.  Your study today will enable you---if you pass the test at the end of this instruction---to earn your doctorate degree and further enable you to teach and otherwise instruct others in this important topic of study.

In fact, Economics is universally recognized as being such an important part of one's education that it is taught at virtually every secondary and advanced institution of higher learning.  Therefore, I do hope you appreciate what I am doing for you here today---giving you the golden opportunity to be called "doctor" by your family, friends and associates in a very important field.

What surprises me is that so many folks recognize the importance of economics, but so few have an inkling as to what it encompasses.  And what is more surprising is the fact that even "experts" in the field seem to have paralysis of the brain when it comes to practicing the fine points of this field of study.


1.  Law of Supply and Demand.

Very, very important.  This law states that the cost of anything is dependent upon its availability.  If something is in great demand and there is very little of it, the price goes up.  If something is in little demand and there is lots of it, the price goes down.  Memorize this one.

2.  Law of the Budget

A budget is a blueprint, or a plan, for how you will spend your money.  Individuals should have a budget.  Families should have a budget.  Businesses do operate on annual budgets.  Governments do sometimes utilize budgets.  The US government does not use a budget because it is inconvenient and causes restrictions in the spending of the taxpayers' money, but most other worldwide governments do follow budgets so that their citizenry will  not suffer things like inflation, deflation, depression, and other hardships.

3.  Inflation, Deflation, Depression, Interest Rates, Commodities, etc....

Don't worry about this stuff.  If you understand points 1 and 2 (above), these things will all work out nicely.

Now then---here is your test for your Ph.D:

1.  What is the Law of Supply and Demand?

2.  What is a budget and why is a budget important?

Extra Credit Question:

---Why do universities require so much non-essential study to earn a doctorate in Economics and why do governments try to make all this sound so complicated?

CONGRATULATIONS!!!!  I am assuming (always dangerous, I know) that you aced the test.  I am assuming this because, with only one or possibly two exceptions, all of my followers are exceedingly intelligent.  You are now a doctor of philosophy in the field of Economics.

I have to end with a true story---

My dad was a salesman who traveled extensively.  One day he sat in on a presentation on economics at a large, African-American university in the American south.  A government bureaucrat addressed the student body for an hour, rambling on and on about this and that in the field of economics.  After he had sufficiently tranquilized his large audience with the most boring of dried-out minutiae, he sat down, much to the relief of his listeners.

The president of the university then took the podium and said this:

"Remember---if your outgo exceeds your income, it'll be your downfall"

Pretty smart man.  I guess that's why he was president.  My dad told that story for years, and it bears remembering.


  1. Amen - too bad we don't all remember it. sandie

  2. Once again, a timeless illustration. Thank you for sharing this and may we all remember it! To think it can be summed up in one sentence.

  3. I think you should go teach economics to those in the hallowed halls in Washington DC.

  4. Thanks for sharing Clint very interesting.


  5. Just a few words tell the truth.

    Thanks for sharing my friend.

    Have a beautiful day and a lot of greetings