'Getting Started on the School System' PT VI: Econ 112 "Tell em Blanco Sent Ya"
Aye, you in the back with those French braids. This is not the Economics class to sleep on. The reasons why people sleep on Econ is because, “For what, I’m not gonna understand it and I’m going to wind up broke anyway” or they are so dope and they’re going to make so much money and live so abundantly that they will never need to know about economics or personal finance. If you fall into either of those two camps then you are exactly who I am talking to. This is for those that do not understand or those that simply think they are too cool.
There is two types of Economics class rooms. There is Macroeconomics which is looking at things like GDP, national revenue, as well as price indices (consumer, producer, employment etc). The second is Microeconomics, this goes over things like supply/demand, costs, competition, as well as determining measurement of elasticities (how shit Is connected, like if one thing happens, how responsive would the economy be. For example, If I own a business and charge 110% of what the average business charges. Measuring my elasticity can help me close the gap and edge out my competition by solving the problem for how much more would I sell if I start slashing prices like Crazy Eddy’s Furniture that's always conveniently approx. 45 min away from wherever you are). That was quite the rant; my bad. Moving along, it is in these sections where students get bogged down by confusion, regulation, and contradicting methods of accumulating wealth.
I remember being in the class when they started going into personal finance and thinking, “Holy shit, what a joke is this.” Sitting here writing this, I can really only remember their version of three things. How to write a check, how to invest and how to save for retirement. Maybe I was the only one not paying attention and everyone else gets it but based off the state of our economy, I’d say I was not alone. What cracks me up, is that the majority of young adults have no clue how to write a check. Low key, I’ve had to google it before so don’t feel bad. As for learning how to invest, we played the stock market game. I learned essentially how to play roulette. Nothing about fundamentals, such as balance sheets or income reports. Didn’t learn about how mutual funds under perform the market 96% of the time. Didn’t learn about real estate. Didn’t even learn about covering my ass in the event of an economic melt down.
If one more person of financial influence utters the suggestion to max out their 401(k) I am going to come UNGLUED. Here’s the reality, I’m not going to scare you with stats and numbers. Rather, I’m just going to talk to you like an adult. I don’t feel super confident with our Social Security system. The government has proven to continuously be shitty handlers of my future money. Which hilariously, isn’t even my money. It’s your parents’ and grandparents’ money. Social Security is our largest Ponzi Scheme. What that means is that every year, when I give the government money they are NOT putting it into an account with my name on it. Instead, my contributions go to the generation currently enjoying benefits. That in itself is suspect but if that’s not enough, we’ve got presidents sticking their hands in the cookie jar every 30 seconds to bail out God knows who. Be that as it may, Social Security will not be around forever, mathematically it is screwed. So, we rely on retirement accounts like 401(k)s where we can hopefully pull together a few hundred g’s. Problem is, if you do the math, between all the financial opponents like fees, taxes and market fluctuation, you’re not even the majority shareholder in your own account.
There is so much to unpack with economics and how it works that we have designed this platform to partner with people like you and drop knowledge so that you can become Financially Optimized. Again, it is not the teachers fault. Teachers are taught what to teach. The bummer is that the content which they’re taught to teach is putting all of us in a position of disadvantage. With one straw left to break the camels back, one can only guess we are headed toward a biblical financial meltdown. Lions will come together and rise above the bulls and the bears
I want to thank you all for continuing to read and engage and share with your friends. ASB Elite is here to make you smarter and more financially optimized. Stay tuned for the rest of our series and keep your ear to the ground for when the release of video and podcast content.