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In an increasingly complex world, good, better, or best may not be your only options. Economist describe our options as trade-offs (opportunity cost), absolute advantage, and comparative advantage. The bottom line is that there are at least three reasons why all choices are "economic."

Trade-Offs

When considering trade-offs, one should begin with a simple cost-benefit analysis. How much must I give up in exchange for some level of value in return. What one calculates as best can be quite personal. In the absence of any direction, we rely on our personal filters to determine good, better, and best. Someone else may pay more than you would simply because he or she values the marginal utility obtained at a higher price.

Trade-offs are the same as opportunity costs. If we vote to raise taxes to pay for a school bond, it is because we have considered the cost of an alternative less-educated society.

Absolute Advantage

While you may feel like there are many things you are capable of doing on your own, there are likely trade-offs or opportunity costs to consider before moving forward. For example, some are absolutely convinced that an internal study about the reputation of an organization is best suited for an internal committee, but is it really? Would an independent review be better administered by an external organization?

Comparative Advantage

In the end, our rational minds should select whichever option delivers a comparative advantage. Sure, we could all have our own gardens and grow our own food. I believe our best choice will be one that produces the best economic outcomes and reduces the amount we must surrender or give up In return.

Conclusion

All choices are economic. The study of economics is in fact the study of people and choices. Adam Smith, the father of economics said that people are motivated by their own self-interest. Scientific studies suggest that human choices are generally irrational and emotional. If this is indeed true, what controls have you in place to ensure both you others in your care make rational economic decisions over costly emotional decisions?

Sources:

Zaltman, G., & Mahoney, M. (2003, January 13). The Subconscious Mind of the Consumer (And How To Reach It). Retrieved July 8, 2019, from https://hbswk.hbs.edu/item/the-subconscious-mind-of-the-consumer-and-how-to-reach-it

There are many stories about the origins of the American-Chinese dish known as chop suey. I will use for my definition, any dish comprised of scraps and leftovers. The idea is to be innovative and resourceful; and, not waste anything.

Greek philosopher "Plato famously wrote: “our need will be the real creator.” Today, we say "necessity is the mother of invention." I will share some personal tips on the Art of Resourcefulness:

Have you ever heard of chop suey? It’s a dish that was invented by Chinese immigrants in America, who used whatever ingredients they had on hand to create a delicious meal. Chop suey literally means “assorted pieces” in Cantonese, and it reflects the idea of being resourceful and not wasting anything.

Resourcefulness is a skill that can help you in many aspects of life, whether it’s cooking, working, or solving problems. It’s the ability to find quick and clever ways to overcome difficulties, using the resources you have available. 

Use Double Entendres to Spice Up Your Language

A double entendre is a phrase or figure of speech that has two meanings, one of which is usually humorous, bawdy, or risqué. For example, “You look really hot!” can mean that you are attractive, or that you are sweating. Double entendres can make your language more lively, witty, and engaging, and they can also help you avoid repetition.

For instance, if you want to write a catchy slogan for a bakery, you could use a double entendre like “We knead dough, you need doughnuts.” This phrase plays on the words “knead” and “need”, and it also implies that the bakery makes fresh doughnuts, and that the customers crave them.

Double entendres can also be used to create jokes, puns, and innuendos, which can make your audience laugh or think. To use double entendres effectively, you need to have a good command of the language, and a sense of humor. You also need to be aware of your audience, and the context of your communication.

Consider All Options When You Are in a Pickle.

Sometimes we have limited resources and out of necessity we get creative. We use substitutions all the time with food recipes (e.g., flour in place of place of corn starch, apple sauce as a substitute for vegetable oil).

Next time you find yourself "in a pickle" or "short one card in a deck," think about chop suey and the art of resourcefulness. I'll never forget the first time I saw bamboo scaffolding used on a building in China. The point is there are options and sometimes we discovery some alternatives work even better.

Written by Keith Lue with assistance from Microsoft Copilot, generative AI.

Once while attending a tailgate party at the Rose Bowl in Pasadena, I was taunted by some opposing fans in the parking lot. I asked them why they weren't inside watching the game? It was the second half and UCLA was ahead. Clearly intoxicated, they murmured something like "it's inevitable." Their prediction turned out to be correct, but I went in to watch the game anyways. Advancements in digital technology are also inevitable. Let me assure you, you can embrace the change and enjoy the game.

Of course not. Many people don't realize that winners don't always win. Yet, you may have heard the expression "Winners never quit." Sometimes it will take multiple failures before one can claim a victory. The odds may not be stacked in your favor and some level of irrational thinking may be required.

Your ultimate victory may take a lifetime. Resilience and persistence are what will carry you through to the finish line and your attitude will make all the difference. In the words of Henry Ford, "Whether you think you can, or you think you can't – you're right." Life is replete with wins and losses. Winners don't always win. May you find triumph in the end.

In a free-market economy, the status quo is definitely not good enough. Those who choose not to make continuous improvements have a long history of being left behind in the proverbial dust. Clearly, the rewards for risk taking are far greater than the safe harbor of mediocrity.

Giants Who Refused to Change

Sears is an example of a retail giant who lost touch with their customer. In the face of brutal competition from Walmart, Costco, and Amazon, the place "where America shops," is now near extinction. The downfall of Blockbuster is well documented. Resistance to change strategies and ignoring customer frustrations with late fees accelerated their demise.

Technological shifts have a reliable record of dismantling the giants. Increasing bandwidth from dial-up to broadband plus unlimited network access forced a significant change in AOL's business model. Strategic business leaders must continue to anticipate change.

Moore's Law

Gordon Moore in 1970 predicted that computer processing power would double about every two years. Moore's belief became the foundation for Intel's successful business model of planned obsolescence.

Planned Obsolescence

Built-in obsolescence by design is a policy of planning or designing a product with an artificially limited useful life, so that it becomes obsolete after a certain period of time.

Rewards for Risk Takers is Relevancy

The ultimate reward for risk taking is relevancy. Jeff Bezos, founder of Amazon made a big bet as he observed the growth of the Internet. His long-tail strategy ultimately paid off crushing competitors like Borders and Barnes and Noble. Bezos did not stop with just selling books. He discovered that the same distribution model could be extended to other types of merchandise and even groceries.

Neglecting your customer and honoring the status quo is a huge mistake, which surely will lead to irrelevancy and obsolescence.

I have often thought, about what I was taught, back in my old-school days.
Reminiscing; thinking about, that old-familiar phrase.
“Make a difference,” do something, is what they always said.
“Good intentions we’ll never lack,” the memories still etched in my head.

The world needs a few more people that really give a care
A friend, a guide, a mentor, a moment or two to share.
People need social, intellectual, moral development.
Physical, spiritual, human development, it’s all relevant.

Relevancy is what really matters; it’s what gives us energy
Gives us purpose, sparks our passions, connects humanity.
It creates an emotion, which increases devotion; we know that it’s the key.
To making a difference, to living our lives, each day more meaningfully.

People are searching for more meaning, more authenticity.
Experiencing feelings of isolation (disenfranchisement), searching for identity.
Personal, emotional, occupational, autonomy
Trying to find purpose, finding spirituality.

One day, I met somebody, somewhat miraculously,
I said, I found your story, what a work of glory, can you help me was my plea.
She said, I’m sorry, can’t help you now, good luck, I wish you well.
Wasn’t the answer I had prayed for; what now Dear God, please tell?

I found a new perspective, a real-life epiphany.
“Inasmuch as ye have done it unto one of the least
of these my brethren, ye have done it unto me.” -- Matthew 25: 40
Yes, If you want to make a difference, good timing is the key.
If you want to make a difference, serve others more willingly.

Got involved, feeling unity.
Building social capital in my community
In the web of humanity, inter-dependence, and general reciprocity,
Get connected with purpose and take action
Avoid mediocrity, avoid distractions
Make the most of each day and make a difference – Be relevant!

When was the last time you pleaded ignorance? There are many times when it is better not to know everything because it is easier or more comfortable. The downside is that it could also kill you not to know. What do I mean by that? I am not talking about missing out on the juicy details. Technology makes it very possible to punch in a few simple responses to wizards or bots and viola, things just happen. The problem is when things break and you have no idea what just happened.

How much should you really know? I believe you should know "just enough to be dangerous." Einstein said "The only thing more dangerous than ignorance is arrogance." From time to time you just need to look under the hood and see what's going on.

As is with most answers in business, the likelihood that all ships “rise with the tide” depends largely on the motivation of others. Economist and moral philosopher Adam Smith said that individuals are driven by their own self interest. Others believe that those living in a collectivist culture are generally inclined to be concerned about equality and the welfare of others.

The individualist can be motivated to lift others, but only if they can find some personal benefit. This belief is likely offensive to some who would prefer to be labeled as selfless or benevolent. The truth is all ships do rise with the tide, but benevolence and trickle-down economics is far less predictable.

Similar to the exchange rate of world currencies, there are several factors that will cause a brand's currency to fluctuate. The three economic conditions that I would consider beyond "supply and demand" are trust, utility, and the gold standard.

Trust

The premise of fiat money is that it is backed by the reserves of a government or some other trusted entity. Printed on all U.S. currency is the sentiment "In God We Trust." In the world of emerging cryptocurrency, it's more like in Facebook, Calibra, the Libra Association, the Libra Network, and the Public Blockchain we trust. That's a lot of trust.

Libra is clearly banking on the Facebook brand currency to propel itself as an acceptable global currency. Traveling in Moscow, Russia, I discovered the ubiquitous Apple Pay. I must say it is quite convenient and it has certainly changed my perspective on near frequency communication (NFC) devices. Brands that carry currency can clearly influence the adoption of new technology.

Utility (Value)

Currency must have utility to have value. My father always used to say "make yourself useful." I think I now understand why. The more widely accepted and useful your brand is, the more perceived value it gains.

Gold Standard (vs. Fiat Money)

On August 15, 1971, U.S. President Richard Nixon announced that the United States would go off the gold standard. U.S. currency was once backed by gold reserves, a rare earth metal. Eventually, the United States could no longer back its currency with gold reserves. According to Rowlatt, gold has no intrinsic value, it simply has value because society has given it value.

Conclusion

So how exactly does a brand achieve an arbitrary gold standard? Brands that are well managed create a hedge against the headwinds of market fluctuations by building currency, expanding trust, and increasing utility.

Sources: Rowlatt, J. (2013, December 08). Why do we value gold? Retrieved July 18, 2019, from https://www.bbc.com/news/magazine-25255957

Some would say that “conflicting messages and competing voices” is just good old politics. Hence, it is the politics of economics that continues to make our world more divided and less understood. I believe the world would benefit greatly from more context to cultivate more compassion and increase our capacity to universally improve economic outcomes. So let's talk about context:

Opposing Solutions In Context

Adam Smith's views on capitalism came during a period of enlightenment, industrial development, and feudalism. Karl Marx views on communism came as a result of tremendous oppression of the proletarians and the peasants by the bourgeoisie.

Karl Marx

Marxist-Lenin views on religion is interesting example competing voices. Karl Marx viewed religion as both a weapon of oppression and a source of hope, Vladimir Lenin and other party leaders believed that "Communism is incompatible with religious faith.”

Adam Smith

Adam Smith's perspective on free trade was in response to "mercantilism," tariffs and overreaching government regulations. He was also fully aware of the dangers of exploitation created by the self-interest of people in power.

Conclusion

We don't live in a perfect world where everyone agrees on everything. Unfortunately, there will always be conflicting messages and competing voices. We love to engage in the sport of politics. Greater transparency is simply not enough. Harmony and civility can be best achieved with more context and reasonable checks and balances. Adam Smith's idea of an "invisible hand" is insufficient to control the exploitative nature and intentionally deceptive practice of bad actors and politicians.

Sources:

Marx, K., & Engels, F. (n.d.). The Communist Manifesto. Retrieved July 18, 2019, from https://www.marxists.org/archive/marx/works/1848/communist-manifesto/

Smith, A. (n.d.). The Wealth of Nations. Retrieved July 18, 2019, from https://www.marxists.org/reference/archive/smith-adam/works/wealth-of-nations/index.htm

Blenman, J. (2019, June 01). Adam Smith and "The Wealth of Nations". Retrieved July 18, 2019, from https://www.investopedia.com/updates/adam-smith-wealth-of-nations/