Search the Community
Showing results for tags 'adam smith'.
Found 4 results
https://loopvids.s3.amazonaws.com/Jan16Post.mp4 There's a pretty cool idea called "co-evolution." It describes how different species tend to form overlapping relationships. Most of them are between insects and plants. Simply because there are tons of different insects, and tons of different plants. Bees and flowers are the most popular example. The flowers give the bees nectar. The bees cross pollinate the flowers. To get the nectar, the bees have to go inside the flower. The pick up pollen on these small prickly things that have outside. And when they go from flower to flower, they pick up pollen from one flower, and leave it in another flower. Of course, neither the bees nor the flowers have any idea what's going on. But we can sort of imagine how his insect-flower "trade agreement" might have occurred. Once upon a time, there were plenty of different kinds of bees. And there were different kinds of flowers. The flowers that happened to have their free nectar right next to their pollen were a perfect match for the nectar loving bees who happened to have those prickly things on them. Maybe there were a bunch of nectar loving bees without those prickly things. Maybe there were a bunch of nectar giving flowers with their pollen somewhere else. But after tens of thousands (or millions) of generations of natural selection, these two (the bees and the flowers) are a perfect match. This type of "co-evolution" is also what they think domesticated dogs. It wasn't like humans went out one day, captured a bunch of wolves and decided to train them. Over perhaps several hundred generations, the most passive dogs started hanging around humans. Just like bees and flowers, they "co-evolved" to help each other out. The dogs got easy food, that they didn't have to chase or kill. The humans got a potentially fierce looking and sounding animal that would chase away strangers. Just like bees and flowers, a perfect match. Another perfect match happens between humans and humans. We humans have TONS of overlapping selfishness. Adam Smith describes this in the book, "The Wealth of Nations." He said the farmer, the butcher, the baker, they don't work hard to produce bread and beer because they desperately want us to be happy. They want our money. But they also know that the only way to get our money is to make something we want MORE than our money. This is the same as bees and flowers. Only we humans have two very critical advantages. One is our conscious thinking minds. We can look around and CHOOSE what kind of stuff we can make. The other is money. When these two ideas combine, magic happens. Learn More: https://mindpersuasion.com/money-instinct/
https://loopvids.s3.amazonaws.com/Jan05Post.mp4 A very helpful metaphor comes from Adam Smith. The guy who wrote, "The Wealth of Nations," way back in 1776. The metaphor is one that is almost always misunderstood. It describes how pricing works in a relatively free economy. How people only need to know the price of something, and everything else will kind of fall into place. For example, suppose you sell burgers. You've got a decent burger restaurant and have a decent stream of customers. But you've noticed that in the past couple months, the price of ground beef has been slowly rising. This would cause you to look for other sources. Which you would do. You'd find other sources, and they'd be cheap, and you'd be back in business. Or suppose you were THINKING about getting into the burger business. You did some calculations, and you figured you could put together and sell a burger for $3 at your costs. Which would mean that if you could sell each burger for $4, you'd be in good shape. The problems was that the going rate for burgers was only $3.50. Not quite enough for you to make a profit. But then you started seeing reports on the news about the price of burgers skyrocketing. People were paying $5 and $6 for a burger. You checked with your people, and you could still make them for $3 and sell them for $4. You get in there, and make a killing. In any of these examples, nobody needs to know WHY the price is what it is. Only that it's going up or down. From a consumer standpoint, this is much easier to see. Suppose you loved yourself a good burger. But only if they were LESS than $5. So you see the news, about how prices of burgers are dropping. The price of the average burger is only $2. You don't need to know why. All you need to know is that you love burgers, and they are now selling for $2. So you get out there and get some. All this is what Adam Smith referred to as the "Invisible Hand." The fact that all everybody, buyers, sellers, potential buyers, potential sellers, need to know is the price. And just knowing the price will slightly alter everybody's behavior. Even if nobody speaks the same language. This is who goods can flow around the world. Goods flow one way, money flows the other. Money to Earth is like blood to your body. Unfortunately, money is a mystery to most people. A confusing mystery. But if you understand money, you can get in the game. And get some. Get Started: https://mindpersuasion.com/money-instinct/
Plenty of people, including myself, love con artist movies. They are usually written so the bad guy has kind of a good reason for being the bad guy. And the guys they usually con aren't that innocent. What's particularly interesting is all the thinking and planning that goes into the con. Movies like Ocean's Eleven, for example, involve a gigantic con centered around a robbery. The entire purpose of the con was an enormous sleight of hand. Get everybody looking over here, so you can do something over there. PT Barnum was famous for saying there's a sucker born every minute. But what's not usually mentioned is the second half of that famous quote. Namely, that suckers are suckers BECAUSE they are willing to believe something that is TOO GOOD to be true. The flip side of this idea is that you "can't con an honest man." Perhaps this is we love con artist movies so much. Nobody is innocent. Even in Ocean's Eleven, they were robbing a casino. A place that makes its money by tricking people that they can get lucky, and go home richer than they came. Some of the coolest cons are ones you'll find in nature. The Venus fly trap and other plants that trick insects into thinking they are getting some kind of delicious snack. When it reality they about to get digested. Some creatures get lucky and "co-evolve." Bees and flowers, for example. Bees aren't any smarter than the poor suckers who get eaten by Venus fly traps. But they DO provide a service to the flowers. Even though it's something that arose organically, it is very instructive. The bees get something, and they give something in return. The flowers get something, and they give something in return. Bees get paid in nectar for doing the work of pollination. We humans like bees because they make honey. And we like flowers because they are easy on the eyes and nose. Flies on the other hand? If they get suckered into getting eaten, no worries. This idea is very useful, and very powerful. If you expect to GET something, you should always expect to GIVE something. Not necessarily in exchange, like bees and flowers. But generally speaking, good results will COST something. Either time, risk, patience, or skills that few people have. The more you think you are going to "get lucky" and get something for free, maybe it's time to check your assumptions. As they say in poker, if you don't know who the sucker is, it's you. Even though bees sting (everybody gets to defend themselves) we all like them because of what they provide. You want to get something, you got to give something. Inside your brain, and outside in the world. Learn More: http://mindpersuasion.com/goal-setting-sucks/