Economics 101

Most people don't realize this, but one of the world's best introductory Economists happens to also be a rock star. That's right children, our good friend Professor Mick Jagger is going to teach you everything you need to know about opportunity cost, supply and demand, and needs and wants- so buckle your seat belts and away we go!

"You can't always get what you want, but if you try sometimes, you might find you get what you need."

Let's start at the beginning, shall we? First, we have needs, and we have wants. Most people actually don't understand the difference between the two. Take for example the girl overheard outside of Louis Vuitton, "but I need that adorable Sistina bag!" Sorry to burst your bubble dear, but in actuality you do not need that bag, but rather, you want it. You may want it more than you want to eat for the next three months, but since you won't actually die without that bag on your arm, we can clearly mark it off of your list of "needs". Needs are very simple- the things you have to have to survive on a day to day basis, like food, water, or perhaps (depending on the weather or where you live) shelter. Wants? If it isn't completely obvious to you yet, it's those other things you don't have to have to survive but would really like to have.

You also can't have everything you want or need. It's actually impossible, and it's called the law of supply and demand. You see, there is only so much out there: so much time, so much money, etc. Unfortunately, there just aren't enough resources to do everything you want or need to do all the time. For instance: I have to go to work, but I want to go to the movies today too. I only have six hours left in the day, and I have to work five of those... I could decide to go to the movie and not go to work, but if I do that then I probably won't be able to fulfill all my needs (food, water, shelter, etc.). Clearly, I'm going to have to decide which means more to me: having a job (and the money that comes with it) or going to a movie today.

Opportunity cost goes hand in hand with these two little lessons- it's the price I pay for giving up the option I didn't choose. So, if I chose to go to the movie today, I gave up the money I would have made at work (and I probably got fired too). If I go to work, I can't go see the movie today. Decisions, decisions.

I was listening to "You can't always get what you want" today, and it really resonated with me. Lately, I feel like I've had two equally awful options to pick from no matter what's going on in my life. I can work, or I can do what I want for the holidays. Clearly, if I go where I want to go, I won't get to work, and I'm probably going to get fired. But, if I don't go, I'm going to miss out on a lot of fun and a chance to make some great memories. I can buy a camera that I'm very interested in, or I can keep paying off my student loans (both of which are important to me). I consider myself a fun-loving person, and while having fun is very important to me, I feel like at this time in my life I have to buckle down a bit more to get to a place where I can have fun on a more regular basis. Oh the tough decisions in life!

Professor Jagger- thank you for your ability to parse words in such an eloquent manner. Especially when it comes to explaining to people that sometimes they can have what they want, and sometimes they can have what they need... but you just can't have it all.