Class is in Session - Principle #1

Hello Friend,
In these times of economic uncertainty, I would like to bring to light the economic principles we know as truths. Principles that will be discussed but never refuted. They are often challenged, yet stand up to scrutiny and prevail as proven facts.

Hopefully this blog will provoke deep thought and action by those who participate in subsequent posts. The purpose of this blog will be to focus on current events and stimulate discussion about solutions for economic/business issues of today.

Principle #1: ALL ECONOMICS ARE MICROECONOMICS.

The ultimate decision maker in any economic situation is ME. We vote with our dollar and feet every day. If you like some one's product or service, you willingly award them with patronizing their business. If you do not like some one's product or service, you may leave their establishment and find some else who will serve your needs.

This is what our economic system is based on. This is why our free market system works. It breeds competition and gives markets the ability to be shaped by its participants. Any third party influence (big gov't, judicial or criminal) that seeks to take economic power away from the participants should not only be limited, but eliminated. In order for our economic system to work, and for the preservation of liberty, we all need to be vigilant in keeping our free markets FREE.

Principle #1 is further illustrated by observing the bear market on Wall Street. There are tremendous bargains in the stock market right now, but there are no buyers because of a confidence deficit created by The President and greed on Wall Street. Therefore, we are seeing a market that continues to fall when recent "blue-chip" stocks are trading at record lows. Individuals are voting with their investment dollars and they are voting for "Saving" or "Selling stock", and voting against Capitol Hill's inability to fix the situation. Investors will not bail out The President and Congress by buying stocks until they start treating businesses as job providers instead of criminals.