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Contents:
• A billionaire economist?
• Conclusion
Economics is all about how to manage what exists. From the very definition, you can see why
it is difficult for a student or master of economics to amass great wealth. The first reason is
that they will always be thinking of managing what they have. They will never think of having
more or creating more. The second reason is that even when they get an opportunity to have
more, based on how they have been taught, their mindset does not allow them to take ad-
vantage. They think their gain is another person’s loss. They think they have to give up some-
thing valuable to achieve something greater. The concept is called opportunity cost.
Management is a great skill and it has its place. But the world cannot go forward with man-
agement. Throughout history, there have been great managers. But in the last 300 years, we
have had inventors, innovators, and adventurers that have changed the world with discover-
ies. These discoveries have changed the way we live and has made a tremendous impact on
the economy.
Economists look at what exists and think of how everybody can manage that. That kind of
thinking is what drowns people into poverty. This is why economists can’t be billionaires. If an
economist becomes a billionaire tomorrow, you can be sure it won’t be long before the mon-
ey is gone.
If you still doubt this point, then consider an illustration. If a brilliant economist 1,000 years
ago is given the task of predicting and creating a financial model for this present world (with
the current world population), what do you think the economist will predict? There is no way
that the economist can predict the internet. Can you imagine today’s economy without the
internet? Think about this.
The financial models today are based on this exact ignorance. Economists think that the re-
sources we have today are the same ones we will have tomorrow.
The media celebrates millionaires and billionaires like they are a special breed of people. And
they are not. If you have listened to enough of them, you will understand that it is no big deal.
They are just people who focused on doing something that produces a lot of money if they
are successful. And they will be successful if they take every possible advantage and don’t
give up.
Many of the rich people try so hard to show regular people that the path to wealth isn’t diffi-
cult at all. But the average person has been stocked with the wrong information for so long
that it is difficult to change. And that programming came from school.
There is a difference between teaching economics and money. Economics is the study of
scarcity. Money is a study of value and the creation of value. And the public gets their under-
standing of the subject of money from learning economics. Once a person’s mind is condi-
tioned by the idea of scarcity, it is difficult to break out.
Your financial life is the way it is because of the people you listen to. Economists lecture the
public about money and hence they plunge the world into the same mindset that they have.
The media don’t call millionaires and billionaires to talk about the economy, rather they call
them to talk about themselves and their opinions. The media calls economists to talk about
the economy. And guess what?
If a billionaire argues with an economist, the economist would win. This is be-
cause the economist is logical. However, the economist will continue to be an employee while
the billionaire will keep making billions.
The problem of poverty will never be solved by money. The central banks can print as much
money as they wish, if the money is not met with productivity growth, the result will be infla-
tion. It could also lead to hyperinflation and the fall of a currency.
Economists sit down and come up with research. The annoying part of the research is that
they present it as the gospel truth to which there can be no deviation. And this research is
designed to limit the thinking of those who read it.
This is just like the 4-minute mile challenge. When people have tried and failed to run a mile
in 4 minutes, scientists came out with an explanation of how a human couldn’t run a mile in
4-minutes. They gave all kinds of explanations about the muscles, tendons, and bone struc-
ture. Yes, even scientists did that. It took one person who is not even a professional athlete to
break the record.
Why do we look at the situation of the economy to determine our financial choices? When
the media start talking about a recession, everybody starts behaving like they are in a reces-
sion. The truth is that people create their own recessions. People keep talking about a 2020
recession, and I have not felt it thus far. Yes, there was an event but how it affects you de-
pends on you. In fact, recessions are the best times to get rich.
In a real sense, the economy is nothing more than the behavior of the producers and con-
sumers in a country. This is why countries with higher levels of optimism and inspiration pro-
The state of the economy is one thing and it is entirely different from your financial reality. The
state of the economy is the problem of the people in government. It is not your problem. It
has nothing to do with your financial results. If you have no job, it is not because people are
not hiring.
What possible result can I help someone get because I don’t seem to have any result myself?
Go online and learn. Become knowledgeable at something. Go deep to the extent where you
know it more than 90% of all people. Then, tailor it to an audience that it doesn’t appeal to
(but needs it). And be different from everybody else.
Your financial future is connected to your decisions. Decide to be the best thing ever to hap-
pen to a specific audience.
Think about the number of times you hear these words and phrases every day: not enough,
bad, need, don’t have, lack, worse, etc. These are words that are consistent with the idea of
scarcity. And they might be everything you associate with finances. And they will shape your
experience.
Entrepreneurs use the concept of scarcity to sell their products and services. And that is
good to drive up their value. But the use of the concept in monetary policy and governance
makes people line up with buckets in front of a tap whereas there is a huge river bank 50
meters away.
What is the one word that makes people rich? Abundance: the idea that there is so much
available. The school system has wired a kind of remorse in people when they make insane
amounts of money. They believe they are taking from what should be someone else’s. And
that is not true.
In today’s world, various economies need people who will command more money. The US
needs people that would justify the money printing they have been doing. The real reason
anyone is without money is that they don’t have something strong and compelling they want
to do with the money.
People solve problems. The financial system is looking for people who can solve problems
(and have proved they can) to give money. Think about this. When you wake up each morn-
ing say this to yourself aloud:
Think abundance.
Conclusion
Why are economic professors not billionaires? It is because they think within the box of the
existing available resources. They are financially logical. If you want to be super rich, you have
to be financially illogical. Think illogical, do illogical.
If nothing else, I hope you now know why you should not listen to economics professors to
make (personal) finance decisions.
Cheers.
Written By
David O.
Author | Thought Leader
Explaining money and entrepreneurship ideas that result in a rich financial life