![]() ![]() This series of articles will look at some of the myths and legends of economics, that all too often confuse and mislead leaders and managers into incorrect solutions, misguided policies and counter-productive actions. ![]() Similarly businesses must constantly make decisions about which product to develop, which project to invest R & D money into, which people to hire or promote. Usually, the goods and services which they desire, exceed their ability to pay for them. For example, a person’s income is finite and he or she must make choices on how to spend or save the money earned. Economics is the science (or would-be science!) of rationing scarce resources. In fact, a basic understanding of economics can elevate the average manager to the status of a star achiever. Cynicism aside, Economics has been called ‘the dismal science’ which is probably unfair and certainly bad for its image and that of economists. Even one-armed economists tend to mumble under their breath the Latin incantation … ceteris paribus which roughly translated means “Other Things Being Equal”, which of course, they never are! This is in effect an economist’s “Get Out of Jail Free card” allowing him or her to pontificate, make predictions and advise politicians with no risk to themselves or to the remains of their reputations. This prevents him from qualifying every prediction he makes with the caveat “But then, of course, on the other hand.”. The best kind of economist has only one arm. ![]()
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