Economics Drives Opinions Like the Heart Drives the Circulatory System
Understanding the current state of our economy and the variables driving our current economic climate is a very difficult task. The reason why is best explained by a quote from one of my most favored professors, Christopher Mushrush: “If you want to have a job which allows you to be 100% wrong 100% of the time, be an economist!” With that being said, no matter which chief economist from whichever firm anyone references, the most important thing to consider is: when listening to these individuals try to understand how their statements relate to the laws of Economic Theory. To accomplish this, one must have an understanding of Economic Theory.
The foundation necessary to understand complex economic opinions does not necessarily need to be otained through earning a doctorate in Economics but, can simply be accomplished through reading some of the most simplistic principles of Economic Theory. A great book I found for beginners is Henry Hazlitt’s Economics in One Lesson.
An example of the power of utilizing simple Economic Theory can best be explained by analyzing the USA “Cash for Clunkers” stimulus plan we consumers observed in 2010 in wake of the US auto industry calamity. The offer was placed on the table to incentivize consumers driving less fuel efficient vehicles up to $4,500.00 cash for trading in their vehicles for cars that met greater fuel efficiency standards. After reading Hazlett’s Economics in One Lesson and applying my education in Economic Theory, I quickly came to the conclusion that Economic stimulus was not the intended goal of “Cash for Clunkers” unless developing the program was a result of poor economic thought. Why do I make the claim that an alternative motive or poor economic thought was observed when implementing this program? The answer is that Economic Theory disagrees with destroying one good for another as there is zero economic gain. This program may have appeared to create economic stimulus, however, the long term affect on the economy is negative as the money spent on the new automobiles has effectively been expunged from the system and no aggregate economic gains were observed. Furthermore, zero economic gain is the result of consumers destroying automobiles to only replace them with another as they are spending all funds that may been spent on creating other goods and services to maximize consumer utility. For further understanding, please see the following:
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Shortage in Psychiatrists: An Example of the Changing Demographics in the Workforce
What direction is the medical profession going? As noted in a fellow blogger’s page http://drmichelletempest.blogspot.com/?expref=next-blog, the psychiatric profession is becoming thinner in numbers while the demand for these professionals increases. It is quite interesting to see the impact of the current state of our medical system. I wonder if this is a result of Obama care? Nevertheless, it is sad to see that the experienced professionals are leaving the field to young and possibly overly enthusiast members of the medical profession. I unfortunately do not know how to comment toward this situation: will the enthusiasm lead to greater patient care, or, a higher rate of misdiagnosis? On another note, could this possibly lead to a situation similar to the education system in the US: too many students and too little time?
Is the trend that is being observed in the psychiatry field unique to a shortage in psychiatrists, or, could this trend be more broadly explained in the medical profession as a whole? Is it possible that this trend is affecting all industries as a giant overhaul of all professions? This question is one that is quite interesting in nature as I believe all business will drastically change as the more established members of our workforce retire and are replaced by its youth. What will come of this overhaul? How will the world react? What will develop from this demographic change? All questions are to be answered in the very near future as each day more wise and established members of the workforce leave their professions to be replaced by the technologically cunning and socially dissimilar generation replace the open positions.
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