Economic Insights

I meet people occasionally and when we get to talking and they find out that I am an economics major they invariably want to talk about the economy. Unfortunatley I am only a junior in an undergraduate program so I don't have too many profound insights to share with them. If they are members I tell them to follow the Prophet (I guess I should carry pass along cards with me and share it with people that aren't members too) you know, stay out of debt, have a food storage, and so on.

I learned this morning that the root word that economy comes from is 16th century word that means "stewardship of a home" then people began using the term "political economy" and from there it has transformed to mean how we use the resources of the nation.

So what I decided was to share quotes and other things I learn about economics with people on my blog. Adam Smith was a great economist that wrote about capitalism in his book "Wealth of Nations", but before that he write a book titled "Theory of Moral Sentiments". The idea is that there must be a moral foundation for capitalism and free markets to work. Today I have a quote from President Benson (you might see a lot from him) that illustrates this point well.

"In our day, there is much emphasis upon building social and material security. Some believe these can be achieved by legislation; others propose materialistic schemes which invariably weaken or destroy initiative, self-reliance, independence, and moral fiber. Relatively few, it seems, turn their attention to those standards and principles which strengthen moral fiber and which develop spiritual and personal security from within. Yet the history of mankind testifies abundantly that lasting security comes only to people who are spiritually and morally strong. Social and economic security can arise only from such a foundation." Ezra Taft Benson So Shall Ye Reap.

I chose this for two reasons: 1) we are seeing the governement trying to give us material security in exchange for our moral fiber. Hugh Nibley said the economy used to be an important thing, now it is the only thing. I think there are people that feel it is more important to save their wealth than keep their principles. They are inviting people to fail by supporting bad choices. 2) Economic success in your home depends on your own moral foundation and the principles you live by. Self control, hard work, faith, tithing, self-reliance and organization are some that come to mind. You don't have to make much money to achieve economic success. (If you want a good place to help you manage your finances go to mint.com, I love it)