Elon Musk once spoke about economics in a sarcastic tone and said:
“Economics often doesn’t match real life. On paper, the calculations look perfect, but in reality, the outcome can be ridiculous.”
To explain this, he told a short humorous story.
Two economists were walking through a forest. Suddenly, they came across a pile of waste on the road.
One economist said to the other,
“I’ll give you $100 if you eat that pile of waste.”
The man took the $100 and actually ate it.
They continued walking. After some distance, they saw another pile of waste.
This time the second economist said,
“Alright, I’ll give you $100 if you eat this one.”
He paid $100, and the first economist ate it too.
After a while, both of them stopped and said,
“Wait a minute… we both still have the same amount of money as before! But we’ve each eaten a pile of waste!”
Suddenly one of them exclaimed,
“Oh! That means we just added $200 to the economy! Amazing! The economy has grown so much!”
This is where the real point lies.
On paper, there was a transaction. Money changed hands. In the accounting books, ‘value’ was added. But in reality—what actually changed?
Both people are still the same.
They are not happier.
Their health didn’t improve.
Their quality of life didn’t improve even a little.
In fact, the real damage was greater.
An economy is only meaningful when it makes people’s lives easier, more dignified, and more secure.
When economics turns into nothing more than a game of increasing numbers, it may sound intelligent—but in reality, it becomes nothing more than absurd.
Credit :Yahia Amin
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