If one of your New Year’s resolutions is to “think economically,” please remember this top ten list:
- Whatever the question, always answer, “There’s no such thing as a free lunch.”
- Defend a decision by declaring, “It was worth the opportunity cost.”
- Whether you like or dislike government, point to, “The power of the market.”
- Explain a love of low prices with, “It’s the law of demand.”
- Explain high prices with, “It’s the law of supply.”
- Preface a position with, “on the one hand…but on the other…”
- Justify your Thai T-shirt, Japanese camera, and Sumatran coffee beans by repeating, “comparative advantage, comparative advantage…”
- When asked, “How are we doing?” just cite the GDP, CPI, and S&P.
- Know that the size of the pie has nothing to do with food.
- And finally, the most dependable way to “think economically” is to remember that, no matter what the topic, “It’s about the economy…”
Note: I wrote this list several years ago and repost it on New Year’s. Enjoy and happy new year!