Dismal Science.

The world is on a new, powerful growth trajectory and more human beings have been lifted from poverty in the last 10 years than the last 10,000 years combined. The game is changing for billions of people in all four corners of the world, and this is a good thing. Economics is full of ideas and observations on human behavior, mathematical models, and statistics and measurements. It is considered to be the Dismal Science, but few disciplines play a more important role in the success of our political and economic stability. Good economic thinking and policy is the bedrock of a peaceful, stable, healthy global community, and the success and well-being of your family. Is there a dangerous shift happening in our country between competing ideas of communism and capitalism? Are capitalists evil and destructive? Are too many people ignorant of basic economic principles? Why are a majority of young Americans rejecting the success of free markets and capitalism - and seeking something much worse? What are the so-called elite colleges and universities teaching these days?

The Egyptians were very interested in finding new, better ways to increase crop yields in their Fertile Crescent and expanding trade opportunities back in 1,400 BC. The Babylonian and Persian empires had a significant influence on the economic thought of the Greeks, and Hesiod captured his economic ideas in Work and Days around 700 BC, and Xenophon with his Ways and Means around 400 BC. Even back in those ancient times, people were developing economic thought and principles as a way of improving crop planning and production. Hesiod and Xenophon were interested in how best to leverage new technology and thinking to improve efficiencies and outcomes. Those early economists understood “that all boats rise in the harbor.” In that period of human development, technology was doubling every 100 years or so; today technology is doubling every 10 months - and will soon be doubling every 60 days, according to leading futurists. 

After the German metal-worker, Johann Gutenberg, perfected his printing press and started printing the Gutenberg Bible in 1455, the game changed across many disciplines, including economics. It wasn’t too long after that the “father of economics” arrived on the scene and provided the fuel and fire to change the world forever: Adam Smith, Scottish philosopher and economist, published his The Wealth of Nations in 1776. It is still a fascinating book and required reading for serious business leaders. Smith is considered to be the greatest economist in human history; his “invisible hand” and developed ideas on division of labor, elements of productivity, and the dynamic requirements for free markets are still an important part of modern economic theory and application. It was the right set of ideas at the beginning of the Industrial Revolution in the 1780s, and shaped the early foundations of our modern, global economy. Many rock-star economists followed with important thinking and helped to apply new models and policy to grow our national economy to the current $22 trillion: John Maynard Keyes, Milton Friedman, Irving Fisher, John Kenneth Galbraith, Daniel Kahneman, and many more. 

It is easy for me to simply say that Karl Marx and his ideas in Das Capital (1867) are some of the most destructive forces in the history of mankind. I don’t need to argue that point; plenty of recorded history, human experience, documented death and destruction, and data clearly paint that picture for any educated, open-minded person. Karl Marx and his family suffered the severe consequences of his economic principles, and so did hundreds of millions of other human beings over the last 150 years.

We have built a highly-complex and dynamic global economy of 300 million businesses that is fueled by relative political stability, innovation, improvements in productivity, and the human drive to work hard and achieve a comfortable economic life for our families. In Jim Clifton’s best-selling book, The Coming Jobs War (2011), he makes the case that the one thing every human being on this planet wants is “a good job.” National leaders want lots of good jobs in their local economies; a good job is the core building block to a strong, stable, and peaceful society. Hopefully, more Americans seek the wisdom and knowledge that only capitalism and free enterprise have proven to achieve that simple goal of creating good jobs and stability. It isn’t a perfect world. We continue to improve our economic models and policies, and more and more people continue to be lifted to new, important levels of economic success. We have learned a lot about what works, and what doesn’t. Free and fair trade, with minimal government tinkering - and built on competitive and comparative advantages with sensible anti-trust guardrails - make the most sense. Economics is a dismal science that requires a lot of trial and error. The discipline of marketing was born out of economics, and sound economic thinking is the foundation to an effective, integrated marketing strategy that drives market share growth and financial success in the modern marketplace. This we know, for sure. There is nothing dismal about being successful.

Let's Create More Sparks: Robert is a curious Irish-Canadian and well-traveled American who naturally enjoys story telling that includes lots of interesting facts and figures. Stats and data points help tell powerful stories. Interesting quotes and good books bring vivid colors and memorable shapes to a story. Good stories inspire the human spirit. Ideally you found an idea or two in this LinkedIn article that you can now use as a fantastic conversation starter with friends or colleagues over a good cup of coffee on a leisurely Saturday afternoon.