Economic Food for Thought

Ever wondered what happened to our smaller bills? Why are they so scarce? Because the rich don't engage in the conduct of small transactions? You might be tempted to conclude that aggregate demand for bills has tilted towards the higher bills. But on a second thought the implication would be that a greater percentage of the populace now belong to the upper echelon in society. And it equally suggests that the inhabitants of the matrix labelled poor has gotten smaller. Hmmmh....It's far too right, no wonder why it feels so wrong!

The Element of Competition & the Concept of Time.

Competition no doubt produces results but the specie of results is what should be of paramount concern to us. A State of perfect competition in Economics is described as a situation where the sellers & buyers of a given commodity are so many that no one single-handely can influence Price or Quantity bought and sold of such a product. But this situation is utopian as it is hardly obtainable in reality. Buyers or sellers would always converge to act in ways that promote their interest(s). In this situation market forces of demand and supply can never equilibrate the system. In other words a state of perfect competition can never be without a deliberate check and balance like Government intervention. But when Government fails out of corruption, the economy is left in the hands of capitalism that does nothing but promote the interests of a few minority who have a firm grip on the factors of production.

When human Beings are pitched against themselves for whatever reason, competition breeds. Be it in a cage, school or race track the aim remains one thing-to outshine others. This is not too good. Promulgating a decree or promoting a system just because it benefits you and probably a few is a selfish act that ignores the majority who out of their natural endowment do or might not fit into these schemes. The consequence is that a new yard stick of success and well being is introduced and everyone begins to acquire things and ways that would enable them fit into these schemes irrespective of their beliefs and natural endowments. In my opinion, competition is to a large extent for amusement and Entertainment. By making it the bedrock of our schooling system we failed woefully because we never gave it a careful thought. Today we talk about conspicuous consumption and it's devastating  negative effects which have placed many individual and household units in a vicious cycle of debts that only an exogenous injection of funds can halt. When savings is used to finance  conspicuous consumption then what is left for Investment? Conspicuous consumption is nothing more than emulating the consumption patterns of the developed nations without a commensurate income. We copy because we want to be like. And we want to be like because we believe we can be like. The root of conspicuous consumption is a sense of competition. Of course we all are running a race but for Heaven's sake not against ourselves? Remember we wrestle not against flesh and blood! In other words our enemies are not our opponents as we have been taught to think. Rather it is the principles that produce these belief systems of trying to be the best or be better than others. Competition can never be healthy! It is not about who comes first, second or third. Neither is it about who makes a first class or pass degree in the University. What we should promote is a culture of Diligence! In other words we should focus on finishing our race or completing our course and not finishing first or last. Combining this issue of competition with Time worsens everything. Time wouldn't be a problem to the diligent. There is always plenty of time to do whatever you want to do because time stands still, waiting for you to use it. The clock gives us this illusion that time moves. The only difference between 2p.m today and 2p.m tomorrow is what happened or took place within each. A Harvard Business review edition stated that the best way to be in competition is to be out of competition. In other words one should produce a UNIQUE set of products or service that is unrivaled in the market. The attention there is the word UNIQUE. To be unique is to look at what is inside and draw it out. As no two fingerprints are the same, no two human beings possess the same gifting and talents. This should be our focus as it is our strength! To draw out what is inside each by exposing each to different things as well as circumstances.