Mention the word economics to someone and you'll likely get a response that it has something to do with money and the economy. However, few are able to get to the core of the definition with clarity. We even took to the Merriam-Webster Dictionary and Investopedia to try to find a good explanation for 'What is Economics?' What we found was a garbled mess that could only be cleared up by Federal Reserve Chairman, Ben Bernanke.
"a social science concerned chiefly with description and analysis of the production, distribution, and consumption of goods and services."
"A social science that studies how individuals, governments, firms and nations make choices on allocating scarce resources to satisfy their unlimited wants. Economics can generally be broken down into: macroeconomics, which concentrates on the behavior of the aggregate economy; and microeconomics, which focuses on individual consumers."
"Economics is, at its very roots, a study of how to improve human happiness and sense of satisfaction in life."
Yes, economics is all of these things above, but Bernanke gets us to the heart of the matter - it's all about happiness. The better you use your resources to maximize your happiness and satisfaction in life, the better off you'll be. To do this, you need to pay some attention to how you're utilizing your resources - time, income, and assets. Often, when we look at our dissatisfactions in life, we'll find that we're poorly utilizing our resources - just think how dissatisfying credit card interest is and you'll know what we're talking about.
- What does economics mean to you?
- Are you maximizing your happiness? If not, what should you change?
- It has been said that, "Happiness in life can more often be improved by what we take out of it, rather than what we put into it." What are some things that you could take out of your life to make it better?