| In industry, in finance, even in government people | | | | tangible elements of the economic equation - |
| apply principles of supply and demand, production | | | | physical resources and labor while it is the |
| and consumption, leverage and compound interest | | | | intangible elements - knowledge, ideas, and |
| with impunity. Nowhere are immutable laws, | | | | motivation - that matter. |
| predictability and certainty more sought after and | | | | Physical resources are required to sustain living |
| valued than in business and markets. Economists, | | | | things. Nothing happens, however, for production, |
| academics, business consultants and financial gurus | | | | distribution, services or trade, without labor. |
| alike seek to refine hypotheses and develop ever | | | | Someone, or most often some group, must do |
| more exacting language in an attempt to | | | | something to produce or provide a product or |
| demystify the workings of supposedly rational | | | | service to meet a specific need or want. The |
| free market systems. In their haste to definitively | | | | dance of supply and demand is a vastly human |
| determine the path to fortune, the learned | | | | undertaking. |
| theorists overlook the most fundamental and | | | | Beyond physical resources and labor, every |
| significant aspect of money and markets - people. | | | | human activity, every product or service |
| If we were to attempt to assess the worth of all | | | | developed or offered for trade is the result of |
| items with economic value in this world, from | | | | the application of motivation, ideas, and |
| people to resources to ideas we undoubtedly | | | | knowledge. People are motivated to manipulate |
| would arrive in the hundreds of trillions of dollars. | | | | labor and physical resources into viable products |
| The estimated value of everything, from real | | | | and services for personal use or trade. The more |
| estate, to commodities, to personal, corporate, or | | | | knowledge and innovation people apply to create |
| government owned property, however, is not | | | | products or services or improve processes the |
| fixed. Values are in fact volatile expectations of | | | | more efficient and effective they can be |
| worth. These expectations are held, not in a vault, | | | | supplying wants and needs and the greater their |
| not in a computer, not in a quarry, but in the | | | | potential to profit. |
| minds of human beings. The value of all things are | | | | Human beings store value. With and within human |
| determined by the wants and needs, by the | | | | beings reside knowledge, know-how, labor, |
| desires, of human beings. All values are set by | | | | motivation, and demand. These elements |
| needs, wants or desires. These needs, wants or | | | | separately or when combined with physical |
| desires constitute demand. | | | | resources determine the nature, intent and |
| Conversely, human beings provide the motivation, | | | | outcome of market activities. Human beings have |
| the knowledge, and the labor to meet all types of | | | | monetary value. A monetary value that in |
| economic demands - wants, needs, desires. The | | | | aggregate, dwarfs the estimated value of all stuff. |
| energy of ideas combined by labor and often with | | | | People need and want. To the degree they need |
| natural resources act to satisfy the seemingly | | | | and want, people determine value. People also |
| insatiable desires of an ever growing population. | | | | create - they produce products and services to |
| As no one is an island unto himself, people benefit | | | | fulfill demand. People are the economic engine, the |
| from the time, energy and talent others apply to | | | | economic fuel, and the economic drivers |
| production, distribution and a myriad of other | | | | determining both supply and demand. People make |
| value added pursuits for sustenance and quality of | | | | money, earn money, empower money. People |
| life. People supply the products and services to | | | | are the makers and mistresses of markets. If |
| satisfy wants and needs. | | | | you intend to amass a fortune, seek to |
| The component elements of markets or whole | | | | understand and satisfy people, for they are the |
| economies for that matter, are: physical | | | | key to understanding money and markets. People |
| resources, labor, knowledge, ideas, and motivation. | | | | make the money go round. |
| Economic pundits often focus erroneously on the | | | | |