Strebler’s Perspective by Jon S. Strebler - “Deregulation: SAD”
Economics lies at the heart of business and finance. And at the heart of economics is the truism that there’s never enough to go around – of virtually everything, everywhere, every time. Economics determines what gets made, how and where it gets made, and who gets whatever is made. Right along with economics’ basic truism is the concept of trade-offs: everything has a cost (and not just financial), and if you want more of something, you’re going to have to accept less of something else.
This bedrock rule is the key to understanding and succeeding in all facets of life, not just business and wealth. Example: If I want more afternoon naps, then there’s less time for yard work, spending time with the wife, working on my investments column, or whatever. In a more conventional business example, if I raise the price of my product, I’ll sell less of the product, ceteris paribus (assuming that all other factors remain unchanged). Or if I produce more surfboards, then I’ll have to cut back on my production of skateboards, again ceteris paribus. It’s remarkable how few people really understand this concept of trade-offs, which in turns leads them to make bone-headed decisions, including how to vote on political candidates and ballot issues.