The 4 Simplified Laws of Economics

Hello,

I am a strong believer in brevity.  These four simplified laws of economics are:

1. There is no such thing as a free lunch.  There is always a “price” which has to be paid by someone.  This law is of paramount importance.

2. The markets are the masters.  Price controls do not work.  You can not simultaneously control both the price and quanity of anything.  If you control the price of any good or service, the supply of that good or service will dimish.

3. Economic events do not exist in isolation.  We do not live and work in an economic vacuum.

4. Economic and politics are inseparable.  Your two generic choices are:

a. Policies that lead to real income growth

b. Policies that lead to redistribution of income.

Note:   There is a price to be paid for both a & b above.

Your comments are welcomed.

Sanford Kahn, Business Author & Speaker