When it comes to economics, a host of ideas comes to mind regarding numbers, balance sheets, financial data, money, and business. Commerce is an essential part of society and a necessity for every human on the planet. Quantifying it all, packaging it into charts and graphs, putting dollar signs in front of all the calculations, and reporting outcomes can be very overwhelming, especially for a guy like me who abhors math and statistics.
The definition of economics varies depending on where you look. Essentially, it is defined as the branch of knowledge concerning production, consumption, and the transfer of wealth. Wealth then must be defined, and we can go with it being the sum of net assets. We all accumulate some form of wealth, and, for our livelihood, we trade some of our wealth for things we need and want.
The scientific study of economics becomes difficult when it comes to human behavior. Praxeology and history become instrumental in learning the nuances and intricacies involved in such a quest. One must pour through volumes of economic theory to gain a true understanding. I would steer you towards Ludwig von Mises book Human Action, A Treatise on Economics for starters.
Okay, so even my eyes are beginning to gloss over. As the writer, I am supposed to be keeping my readers engaged! Economics is boring to me. Reading about it, writing about it, or even thinking about it makes me want to take a long nap.
A lesson in economics is not my goal here, and I am by no means qualified to do so. However, I want to make the point that human action is the driver of economics and human interaction is the means to obtain the many objectives of each person. Commerce is the action part of economics where individuals within society must interact with one another to achieve their countless goals. I say “must interact” because to survive, we are forced to transact with others. It is a team sport! For the most part, everyone is seeking to satisfy their own needs. Of course, there are other motivations beyond self-interest. Charity, philanthropy, donating to a cause, and other forms of altruism are obvious examples. Then, of course, we must part with our money in ways we wish we could avoid, i.e. taxes, insurance, finance fees, penalties, lawsuits, theft (did I say taxes?) ….anyway, reams of paper and bytes of data are inexhaustibly consumed on the subject of economics. If that’s your groove, have at it! My reason for crafting this message is to highlight the greatest currency known to man yet the one most ignored.
Before I get to the greatest currency, and no, I am not trying to sell you on any precious metals, cryptocurrencies, or any other asset, let’s get the standard definition of currency out of the way.