The reason I like working with a macro economic planning firm
is because we take economic principles, timeless truths, and apply them on a practical level to the smallest of economies, that of an individual family unit.
As such, we ask our clients to see the forest for the trees. We ask clients to envision the future as they operate in the present. We ask clients to recognize that while life happens in the short term, while we have immediate cash flows needs and wants, the more you understand that every dollar in your system impacts every other dollar, not just today but tomorrow, the better decisions you will make in the short run. Thus, you HAVE to have the long range vision in mind as you make your short term moves.
Henry Hazlitt in ECONOMICS IN ONE LESSON
addresses the “art of economics” as just this. He states, “The whole of economics can be reduced to a single lesson, and that lesson can be reduced to a single sentence. The art of economics consists in looking not merely at the immediate but at the longer effects of any act or policy; it consists in tracing the consequences of that policy not merely for one group but for all people.” (p.17)
Hazlitt tells us that “economics is haunted by more fallacies than any other study known to man” because the “inherent difficulties of the subject…are multiplied a thousandfold by…the special pleading of selfish interests. While every group has certain economic interests identical with those of all groups, every group has also…interests antagonistic to those of all other groups.” (p.15)
He goes on to explain that there is a second main factor that spawns new economic fallacies every day and that is the fallacy of overlooking secondary consequences. “This is the persistent tendency of men to see only the immediate effects of a given policy, or its effects only on a special group, and to neglect to inquire what the long-run effects of that policy will be not only on that special group but on all groups.” (p.15)
While Hazlitt writes to bring sanity and clarity to a world of economic thought and confusion so that one can understand the larger political and social implications on a national and global level, he is discussing principles, truths, and, as such, these same ideas can apply to us as individuals. Re-read the above quotes and see the “special groups” that vie for the finite capital in a system as your family deciding whether you have the capital to invest in a new business venture or whether you will use it to send your first born to college. Think about how many times you argue with your spouse about your need for the top of the line luxury car versus her desire for a two week family vacation. The “either-or” decisions that must be made at the national and global level are the same that you much make within your personal economy. “Special interest groups” exist within our own family unit.
As such, educate yourself about that which is occurring at the national and global level but, I beseech you, recognize how the underlying beliefs which guide these “bigger” systems are born from a series of beliefs which underlie your own family economy. As such, whether you have a sustainable wealth plan with a viable and guaranteed strategy for growth or just a “gotta get the most out of the next deal” mentality, will determine whether you are a tree hugger or a forester. I just hope you are not hugging a tree that the forester plans to chop down because there is a forester and if it is not you, then someone else will establish the vision for what gets chopped and what get fertilized.
Now if you were able to follow that analogy (in all of its uniqueness), then participate in my economics book study by joining “Epiphany Financial
” on Facebook
. I further encourage you to immerse yourself in how economic thinkers attempt to correct what the masses read via the popular media outlets as they offer an alternative and realistic perspective on what I call the “delusion of the masses.”
If you do not want to educate yourself by studying economics, then contact me
and allow me to work with you to understand how your underlying beliefs may be undermining not just your long term success but even that which you could enjoy today.
- The grandfather of it all – The Ludwig von Mises Institute was founded in 1982 as the research and educational center of classical liberalism, libertarian political theory, and the Austrian School of economics.
- The mission states: to widen the scope of financial, economic and political information available to the professional investing public.; to skeptically examine and, where necessary, attack the flaccid institution that financial journalism has become.
. com - Former publications editor to Ludwig von Mises and chief of staff to Congressman Ron Paul, Lew Rockwell is founder and chairman of the Mises Institute, literary executor of Murray N. Roth bard, and editor of LewRockwell.com