The One Word That Explains Why Economics Professors Are Not Billionaires

This would change the financial experts you listen to

David O.
David O.
Jun 19 · 8 min read
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Photo by Ashton Bingham on Unsplash

It matters who you learn about money from. There is a reason 99% of the world’s population competes for 1% of the resources. And it is not the fault of the rich or the ultra-rich. Instead, it is those the 99% listen to for financial advice. There is one word in the definition of economics that is the root of the problem. And that is the word, “scarcity”. Economics operates on the premise that there is scarcity and hence resources have to be rationed. This is why economics professors look to manage what is. They cannot think of possibilities or abundance. Hence, they find it difficult to amass wealth or become billionaires. But it doesn’t end here.


Contents:

  • A billionaire economist?
  • Who lectures the public about money?
  • The true purpose of economic research
  • Your financial future is not connected to the state of the economy
  • The one word that makes people rich
  • Conclusion

A Billionaire Economist?

Economics is all about how to manage what exists. From the very definition, you can see why it is difficult for a student or master of economics to amass great wealth. The first reason is that they will always be thinking of managing what they have. They will never think of having more or creating more. The second reason is that even when they get an opportunity to have more, based on how they have been taught, their mindset does not allow them to take advantage. They think their gain is another person’s loss. They think they have to give up something valuable to achieve something greater. The concept is called opportunity cost.

Management is a great skill and it has its place. But the world cannot go forward with management. Throughout history, there have been great managers. But in the last 300 years, we have had inventors, innovators, and adventurers that have changed the world with discoveries. These discoveries have changed the way we live and has made a tremendous impact on the economy.

A great economy is not a product of great management. A great economy is a product of invention, innovation, and discoveries

Economists look at what exists and think of how everybody can manage that. That kind of thinking is what drowns people into poverty. This is why economists can’t be billionaires. If an economist becomes a billionaire tomorrow, you can be sure it won’t be long before the money is gone.

Big money runs from those who try to keep it and runs to those who dare to dream big

If you still doubt this point, then consider an illustration. If a brilliant economist 1,000 years ago is given the task of predicting and creating a financial model for this present world (with the current world population), what do you think the economist will predict? There is no way that the economist can predict the internet. Can you imagine today’s economy without the internet? Think about this.

The financial models today are based on this exact ignorance. Economists think that the resources we have today are the same ones we will have tomorrow.


Who Lectures the Public About Money?

The media celebrates millionaires and billionaires like they are a special breed of people. And they are not. If you have listened to enough of them, you will understand that it is no big deal. They are just people who focused on doing something that produces a lot of money if they are successful. And they will be successful if they take every possible advantage and don’t give up.

Many of the rich people try so hard to show regular people that the path to wealth isn’t difficult at all. But the average person has been stocked with the wrong information for so long that it is difficult to change. And that programming came from school.

School teach economics and not money

There is a difference between teaching economics and money. Economics is the study of scarcity. Money is a study of value and the creation of value. And the public gets their understanding of the subject of money from learning economics. Once a person’s mind is conditioned by the idea of scarcity, it is difficult to break out.

This is why rich people are either self-made (who stopped school early) or they are the children of the rich (who were taught differently about money at home)

Your financial life is the way it is because of the people you listen to. Economists lecture the public about money and hence they plunge the world into the same mindset that they have. The media don’t call millionaires and billionaires to talk about the economy, rather they call them to talk about themselves and their opinions. The media calls economists to talk about the economy. And guess what?

If a billionaire argues with an economist, the economist would win. This is because the economist is logical. However, the economist will continue to be an employee while the billionaire will keep making billions.

It matters whose insight you are listening to about money.


Economic Research is Futile

The problem of poverty will never be solved by money. The central banks can print as much money as they wish, if the money is not met with productivity growth, the result will be inflation. It could also lead to hyperinflation and the fall of a currency.

Productivity growth is not championed by economists. Productivity growth is championed by entrepreneurs. Entrepreneurs that are illogical end up rich. This is because they look at what could be and go forward to create it.

Economists sit down and come up with research. The annoying part of the research is that they present it as the gospel truth to which there can be no deviation. And this research is designed to limit the thinking of those who read it.

If you read an economic research, it puts your mind in a box that you may never be able to break out from

This is just like the 4-minute mile challenge. When people have tried and failed to run a mile in 4 minutes, scientists came out with an explanation of how a human couldn’t run a mile in 4-minutes. They gave all kinds of explanations about the muscles, tendons, and bone structure. Yes, even scientists did that. It took one person who is not even a professional athlete to break the record.

I heard a story of a class that was given a particular complex equation to solve. The professor told the students that all the great professors had tried to solve the equation and had failed. Then the professor wrote the question on the board. All the students tried and failed. After the professor was gone, a young guy who had been absent walked in, looked at the equation and solved it in one glance. The interesting part was that the young guy was not even among the best students.

It matters the people you allow to paint your financial mindset.


Your Financial Future is Not Connected to the State of the Economy

Why do we look at the situation of the economy to determine our financial choices? When the media start talking about a recession, everybody starts behaving like they are in a recession. The truth is that people create their own recessions. People keep talking about a 2020 recession, and I have not felt it thus far. Yes, there was an event but how it affects you depends on you. In fact, recessions are the best times to get rich.

Where there is no optimism or inspiration, and people look up to the economic report, poverty is bound to be created

In a real sense, the economy is nothing more than the behavior of the producers and consumers in a country. This is why countries with higher levels of optimism and inspiration produce more entrepreneurs. If your behavior is altered or influenced by the news, you have put yourself in a difficult place to create wealth.

The state of the economy is one thing and it is entirely different from your financial reality. The state of the economy is the problem of the people in government. It is not your problem. It has nothing to do with your financial results. If you have no job, it is not because people are not hiring.

If you have no job or work, it is because you have not figured out a way to help another person get a result to which they will gladly pay you for

What possible result can I help someone get because I don’t seem to have any result myself? Go online and learn. Become knowledgeable at something. Go deep to the extent where you know it more than 90% of all people. Then, tailor it to an audience that it doesn’t appeal to (but needs it). And be different from everybody else.

Your financial future is connected to your decisions. Decide to be the best thing ever to happen to a specific audience.


The One Word That Makes People Rich

Think about the number of times you hear these words and phrases every day: not enough, bad, need, don’t have, lack, worse, etc. These are words that are consistent with the idea of scarcity. And they might be everything you associate with finances. And they will shape your experience.

Now, think about these other words and phrases: rich, plenty, too much, excess. How often do you hear them being used in a financial context? How often do you hear that on the news? Even when the times are good, they are anticipating the bad times.

Entrepreneurs use the concept of scarcity to sell their products and services. And that is good to drive up their value. But the use of the concept in monetary policy and governance makes people line up with buckets in front of a tap whereas there is a huge river bank 50 meters away.

What is the one word that makes people rich? Abundance: the idea that there is so much available. The school system has wired a kind of remorse in people when they make insane amounts of money. They believe they are taking from what should be someone else’s. And that is not true.

If you decide to make a lot more money today, and the money in circulation can’t keep up, the Fed will print more money to match up

In today’s world, various economies need people who will command more money. The US needs people that would justify the money printing they have been doing. The real reason anyone is without money is that they don’t have something strong and compelling they want to do with the money.

People solve problems. The financial system is looking for people who can solve problems (and have proved they can) to give money. Think about this. When you wake up each morning say this to yourself aloud:

There is too much money in the world looking for someone who has a solution to a problem. I have decided to solve a problem and hence I am qualified to have a lot of money!

Think abundance.


Conclusion

Why are economic professors not billionaires? It is because they think within the box of the existing available resources. They are financially logical. If you want to be super rich, you have to be financially illogical. Think illogical, do illogical.

If nothing else, I hope you now know why you should not listen to economics professors to make (personal) finance decisions.

Cheers.

Rich Culture

Be the giver, not the beggar

David O.

Written by

David O.

Explaining money and entrepreneurship ideas that result in a rich financial life | Author | Check this now: davidolarinoye.com

Rich Culture

Exposing the mindset and strategies that lead people into a life of affluence, especially people from disadvantaged backgrounds

David O.

Written by

David O.

Explaining money and entrepreneurship ideas that result in a rich financial life | Author | Check this now: davidolarinoye.com

Rich Culture

Exposing the mindset and strategies that lead people into a life of affluence, especially people from disadvantaged backgrounds

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