Cheat sheet
- Live within your means – As outlined in the explanation of monopoly and hegemony, a key factor in the flow of money from the poor to the wealthy is that the wealthy live within their means and the poor cannot. Consequently the wealthy are able to invest in things that generate revenue, further increasing their ability to live within their means.
- Invest your time – time is the one thing you will never get back, so use it wisely. Time can be spent, invested or wasted. As a born procrastinator I know how easy it is to waste time. Spend your time on things your need to do or enjoy doing. Invest your time in making it easier to do the things you need to do tomorrow. When in doubt think of yourself at 90 looking back and take the path of least regret.
- Understand your economic ecosystem – economics is human activity, if you understand what value you are adding to whom, then you will get a sense of your role in the economy. If you then consider the need or desire that underpins this and the possible alternatives there are to meeting this, you then have a sense of your economic vulnerability. For example demand for hairdressers is permanent but fluctuates with changes in fashion. Tattoo artistry on the other hand is an entirely discretionary spend. Sometimes you might need to look at the bigger picture. Working as a mechanic for a business that has the maintenance contract for coal mining vehicles in a low quality mine means that you are immediately dependent on a vulnerable ‘food chain’ that is part of a much bigger ecosystem.
- Watch for trends – everybody you know is part of your economic ecosystem. Think about the decisions they make and the impact these decisions are having on the economy. If you extrapolate that to the broader economy you will be able to see broader trends in the economy often before they are reported. Consider what are they buying, where are they spending their time, where they go on holiday, how busy are they at work. Everything we do or don’t do has an impact on the economy.
- Adjust ahead of the change – timing is often the key to winning or losing in economic transitions. At an individual level it might not even require a change of profession, for example an accountant swapping from an industry in decline to one on the rise could be the difference between redundancy and job security.
- Vote well – they say we get the governments we deserve, so ask for and support a government that is willing to take a longer term view and is prepared to act in a calm and reasonable manner. Avoid the fear mongers. The economic challenges facing governments are very significant. Like Queen Elizabeth in England in 1558 most western governments find themselves in power without funds at a time when the population is restless, demanding and sceptical of the capabilities of their leaders. We can all only hope that our governments will lead us as well as she did.
- Buy the book – It really is not that long and it might just change your life.