Friday, August 25, 2006

Dentists Would Make Good Economists

The reality of economics is what sounds good in the short term is almost always bad in the long term.

Most of what passes for economics is like a bad dentist prescribing candy bars to cure hunger. Since hunger and nutrition is not his field - the results will cause pain and loss latter.

We have been told that the fix for a slowing economy is "borrow more money and spend it on SUVs and big houses." Lots of money is provided cheaply by government - lots is then borrowed - and tomorrow the economy is hungry again.

And weaker.

And sick.

A good dentist tells you candy is bad for you. He tells you to brush your teeth and do other unremarkable and steady tasks. The dentist will also grind away at decay. A dentist's methods are not very pleasant at all.

But your teeth will be stronger, and brighter, and last longer.

A good economist would be someone you should see once a year, not daily on TV as financial entertainment.

Those economic prescriptions that lead to a healthy and strong teeth economy are frequently unpleasant in the short term.

  • avoid debt
  • save money regularly
  • invest knowledgeably
  • start your own business
  • create long term business goodwill
  • engage in free markets and free trade

The short term results may not be sweet, but long term results will continue to shine brightly.

The bad economist would leave in dead teeth and rotting decay believing that perhaps the other teeth can support them. They ignore the bad apple and pretend it won't ruin the whole bunch.

The good dentist knows that removing dead teeth and restoring rotting gums will not be pleasant - but the durability and beauty of your bite is a long term proposition. Even more important is the information provided on how to extend the life of your teeth.

Sound procedures applied with a view to the future.

Not quick fixes that meet momentary desires.

Smile for me.


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