8 January 2007

What is Economics and Why is It Important?

Economics is an attempt to satisfy unlimited demand with finite resources. We do not need to be encouraged to demand/consume things, because it is a natural thing to do. Consumption is a form of destruction, which done in excess leads to want and poverty. Production is a form of building/creating and is the means by which we satisfy demand. Satisfying as much demand as possible is the key to success and prosperity.

Prosperity is important because it leads to a creation of wealth. Wealth is necessary for the formation of capital. Capital is necessary to create more production and more prosperity. With more and more production and wealth, we are able to reduce want, poverty and conflicts over finite resources. In the end, economics is a peaceful form of conflict resolution.

The best economic system that creates wealth, prosperity, and peace among men is the free-market. History has proven this to be correct. The freer a society the more prosperous it becomes for example; Athens, Rome, Dutch, English and the United States. Any intervention or hinderance of the free-market leads to less production, wealth and peace. Unfortunately, the people above are also good examples of the disasters that befall societies, which use government intervention in the markets. The US has engaged in dangerous economics by paying people not to work/produce, farmers not to grow and regulated production. We have witnessed the results in a huge trade deficit and unsustainable government and personal debts.

Here is a quote by P.J. O'Rouke about wealth:

"Wealth is for most people the only honest and likely path to liberty. With money comes power over the world. Men are freed from drudgery and women from exploitation. Businesses can be started, home built, communities formed, religions practiced and education pursued."

(other articles are archived on my Writings page.)

Rebecca Iocca

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