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The Evolution of Economics

Welcome back you bunch of HomoEconomicus!

What is economics all about? Well, this is its classic definition (creds to British economist Lionel Robbins):

The study of scarce resources which have alternative uses.

Read it. Absorb it. Sing it in the shower. Remember, every one of the many branches of economics always boils down to this. So get a tattoo of it if you need to because without this you will be lost in the darkest of dungeons my friend.

Then along came the behavioral economists, such as the Nobel prize-winning psycho-economist: Daniel Kahneman (I highly recommend Thinking Fast and Slow). They began to look into the fact that ultimately, the mere concept of economics vanishes without human beings, since it is:

The study of human choice and how it affects the allocation of scarce resources which have alternative uses.

adam smith

Ok.  So now we have two definitions, but there are many more: how actions affect the material standard of living, turning inputs into outputs. However, keep in mind that economics is not an exact science and there are many controversies among scholars of the subject. Nonetheless, do not forget that the basic principles are constant and not a matter of discussion or opinion (even with all the schools of thought which have emerged since Adam Smith).

Oh by the way. We owe much of it to this fine looking gentleman. He is our God! Do not forget that (we will be talking a lot about him in the future).

May the ECON be with you