The difference between economics and politics

Good day ladies and gentlemen. Today we will discuss economics and politics and how they are different. There has been a great deal of discussion lately about the role of our government. Some people feel that there are so many people in this country that need help, that the government never seems to do enough to help them. Other people feel that they work hard and they wish that the government would be more fiscally responsible. Still other people are just barely scraping by and they never seem to be able to make headway. For them, anything that will help their immediate situation seems like a good thing to do. Have you heard these types of comments from people you know or even on the news?

Let’s try an exercise: Find the one of those three statements that you agree with the most. Then try looking through the viewpoint of the other two. The people who want the government to help those in need might think those who value fiscal responsibility are hard or uncaring. The people who value fiscal responsibility might think those that want to help others are lofty do gooders with their heads in the clouds, not understanding reality. Both of them might think that those that whose viewpoints vary based on the times are wishy-washy for not sticking with a certain cause or political party.

Our views can be very different and yet very sincere. Just because there is a difference doesn’t mean that someone is right and someone is wrong. What is important to understand is that your views don’t make any difference in economics.

Economics is independent of your education, of your political belief, of your religious belief, of your color, your gender, and your age. The basic principles of the science of economics . . . which is the science of the material welfare of mankind . . . apply to any economic entity equally.

What is an economic entity? Well, you are an economic entity. A family could be considered an economic entity, or a company, or a city, or a state, or a country, or the whole world.

Stop back again next time when we’ll continue the story by creating a model of an economic entity.

Professor Frankum

How to Understand Economics in 1 Hour

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