Well, the election is finally over. I know that it isnt over till its over, but using an economists market test, its over. Both parties sent me, as they probably did you, many text messages every day during the campaign season asking for money. The texts have stopped. So, if they dont need money at this date, its over even if it is not over.

Right now, a little over half of the country is looking forward to some kind of change while a little under half is beginning to adjust to not having the same old same old. One civics lesson has clearly come home the Electoral College is really important. If it did not exist then small population states like Nevada, Arizona, North Carolina and a few others would not have mattered. Only large population centers would have been important. With the Electoral College, everyone has a chance of mattering.

That is the end of the civics lesson, on to economics.

Regardless of what our new politics brings, I am renewed because I know that political policies come and go, yet economics is here to stay. I thought I would list some fundamental economic ideas that never go away if, for no other reason, to lift my spirits.

My first economic constant is that people respond to their circumstances. If you want some extra points on the final exam you would say that people respond to the incentives they face. Clearly, new politics will bring a change in circumstances. So, new politics will bring forth a change in our behavior. We will do more things that the new politics define as creating benefits and do less of those things that bring added costs. While these benefits and the costs will not be on our minds every day, they may very well be on our minds on Nov. 8, 2022.

Economic constant two, TANSTAAFL There aint no such thing as a free lunch. Again, for the final exam, everything we do has costs. Money is only a veil. At the simplest level, money makes trade easier. It also has a tendency to hide the fact that when circumstances change and our incentives change, physical resources move from one use to another. While we get more of something, we will get less of something else because resources are limited and will always be so. Someone might tell us that to consume something (like college) you dont need dollars because our politics makes it free. There are still costs, however. Somewhere we must give up other things to get the things we are told are free. That is as certain as gravity.

My third economics constant is that competitive markets are amazing places that process unbelievable amounts of information. I will leave the underlying theory for another day. But for now, no matter the politics, demand curves will forever slope downward to the right and supply curves will forever slope upward to the right. This statement is based on fundamental human behavior and basic knowledge of production. These things never ever go away. So markets will never ever go away and, if entry into the marketplace is not impeded, social welfare will be maximized by private individuals who are simply being self-interested. This is economic magic that is not sleight of hand. It is real, it can be seen, and it is true.

And finally, entrepreneurs are only successful if they solve problems for other people. Entrepreneurs are always thinking about you and me, and trying to find ways to make our lives better. I cant begrudge them for making profit if they are, first and foremost, thinking of me. Five years of 1 Million Cups meetings in Brunswick and the stories of our entrepreneurs have affirmed this every month.

There are many other constants I could share so dont let your hearts be troubled. Politics, politicians, and policies may come and go, but economics is forever. Amen.

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Fundamental economic ideas that never go away | Editorial Columns - Brunswick News