Monday, December 15, 2008

Economics Taught What Once Was Taught as Right was Always the Wrong.

Economics is a unique field of study. After a few questions it led me to open my eyes to a different world. An equilibrium between cars in each traffic lane, and the equilibrium would then help us assess which lane we ourselves want to drive on. This equilibrium helped us make our decision, it was information.
This question and answer leads to the want of applying such thought onto all things. Taking history classes became entertaining. It was no longer a memorization game but of applying the new theory that people make decisions using the equilibrium. How to know when to apply it? That was simple, I merely had to ask "why?" Why did some colonists revolt against the British? Why did the British not allow the colonists to leave peacefully?

Or how about the look back to what I was always taught throughout my years at public school and my first economic class. That the government, FDR, had saved us from the collapse of the market. We should all rejoice at the salvation from turmoil that was brought to us by the government. Apply economics to this period and a new outlook arises. I was lied to.
Arise the question of why? Why was I lied to? What is to gain?
What does economics teach? Incentives matter.
Why do incentives matter? As it gives rise to innovation.
Why does innovation matter? Others will imitate it.

Nothing is as black and white as I was once taught.
Government does not simply do what is best for the nation. Why?
Individuals choose not groups. With this simple find, we learn that politicians have the incentive not to do what is right, but to abuse their power.

I was taught to want to be President. Not anymore. Economics has taught me many things and what I would hope it teaches others is simply don't study and read material because we need to pass a class. Ask why? Why did this happen? Search for truth, you know you reached it once it has answered the question, "why?"

Monday, December 08, 2008

Cold Hearted or a Life with Morals

Many individuals find work and put their effort into being good at their job so that they can maintain a satisfying life. The company goes under and the workers are now out of work. Is this now my duty to give money to support them? If so, what incentives are we giving here; to not work hard let the company fail because in the end you are still supported? Is there something I am missing? Am I just cold-hearted or am I just being moralistic.

Sorry the company failed. I know if I were out of a job I'd want help too, but lets not reward bad behavior otherwise we should not punish the disobedient child.

Rewards and prizes go to those who deserve it, not to he who cries loudest. Society as a whole frowns upon the parent who give in to the bratty kid, why should we give in to the grown ups who cry loudest?

Padre Pio on Joining the Catholic Church

As a Sponsor reading this gave me inspiration to make sure I am doing things right.

Once Padre Pio was asked "Father, you, helped by many praying souls, work hard to bring back souls who have fallen away to the heart of the Church. At the same time you leave them for months without absolution. Doesn't this mean you leave them out of the Church?"

The Padre answered "It isn't enough to enter the Church. You need to come in well. For you it is enough that they enter in Mass. For me it's important they are well prepared to come in. The months used to prepare one to be part of the Church are well spent. Entering unprepared is just the same as not entering."

When told "Father, those people that you do not absolve, in the case of sudden death, run the risk of damnation". He responded "But who told you that these souls are in God's bad books!?"
The questioner objected: "And if they are not in God's bad books why can't they approach the Eucharist?" To which Padre Pio replied "Because they have to do a particular penance."