From An Acorn To An Oak Tree Ps. 92:12

The #Fifth Fundamental Economic Principle: There are Gains from Trade.

by: Ejiro U. Osiobe

In solving the Social-Economic problems that plague the world today, “there are no solutions only trade-offs.” Now, don’t get me wrong I totally agree with your ideology that socialism is a great idea, but it doesn’t mean it’s a great reality ---- Dr. Thomas Sowell. In political-economic or social-economic relatively, I’m yet to come across a non-zero-sum solution; this statement holds with economic modeling. Because there are always constraints and our best word “Ceteris Paribus” considering these, there are all trade-offs.

 

The perfect solution to any geo-political, social-economic, or financial-economic problem doesn’t exist. Acknowledging that due to the #first economic principle (resource are scarce), #second economic principle (opportunity cost), and #third economic principle the (marginal analysis) mindset we know we all are “making trade-offs” at every point of our lives. Accepting this revelation, will help us make a better decision(s), take individual responsibility for our actions, keep to our words, and move on with the set-out goal(s). Seeking perfection is a good thing, but let’s not make perfect the enemy of the good and just because things are good, doesn’t mean we can’t aim for better. So, at every point lets try to be less nihilistic because it will only lead to passiveness, inaction, and failure. Regardless of what a business contract or deal looks like, there is always #fifth fundamental economic principle (gains from every trade) taking place.

 

An example to bring the idea home, when you board a plane that has a layover “please GOD, not Chicago Midway or LaGuardia,” you’re giving up some freedom of choosing how fast the flight would go, compared to if you were flying your jet. But on the Brightside, your ticket may be cheap, and you get to see the beautiful cities of New York and Chicago. At this point, you just made a trade-off.

 

The basic gist is don’t beat yourself up because there is no such thing as a “perfect” solution. As T. Sowell writes, it doesn’t exist.