Talking Money
Speaking the language of economics to better engage your clients and community
I find this topic to be incredibly relevant and worthy of serious discussion, so I'm setting all jokes aside for this one and hopeful you will add your comments after reading.
Have you ever felt like economists are speaking an alien language? I certainly did. But I've discovered that economic literacy isn't just for specialists with fancy suits and Bloomberg terminals—it's a fundamental skill for everyone.
To grow both professionally and personally, I sought guidance from a friend with an MBA and began subscribing to the Wall Street Journal and Financial Times back in 2020. I now consider my economic education as essential as changing a tire or mending a torn sweater.
This new language has transformed how I approach my sales process, political views, spending habits, investments, and life in general. Once I became comfortable with economic terminology, I started seeing puzzles everywhere that I could now solve: from negotiating a raise (or "human capital optimization") to understanding why my favorite record shop closed ("market exit due to overhead costs"). Economic literacy has become a kind of superpower!
Moreover, this knowledge enhances our ability to support our communities. When we can identify and discuss problems in strictly economic terms, we can work together more effectively toward solutions.
This skill is particularly crucial now as our current administration proposes sweeping changes to public resource allocation. Citizens are struggling to determine what policies are realistic improvements versus mere political rhetoric.
The recent establishment of Trump's Department of Government Efficiency (DOGE), co-led by Elon Musk and Vivek Ramaswamy (constitutional questions aside), has already impacted public policy and everyday American life. As DOGE aims to slash federal bureaucracy with the goal of saving trillions, only those fluent in economics can properly assess whether such proposals might strengthen or weaken U.S. economic foundations and international relations.
Key Takeaway:
In today's complex economic landscape, financial literacy has become increasingly essential. Knowing a bit about economics helps you make sense of today's news and stand up for what matters to you, advocate for yourself and your community.
To my readers I would like to ask for your help in answering some BIG questions. Please pick one and give it to me straight:
How has your relationship with financial news and economic terminology changed over time? Was there a specific moment that sparked your interest?
Do you think schools should prioritize teaching economic literacy alongside traditional subjects? At what age should it begin?
What resources would you recommend for someone just beginning their journey toward economic literacy?
What economic term or concept do you wish more people understood, and why?
How do you balance economic reasoning with other values (ethical, social, environmental) when forming opinions on policy?