Umpqua Connect

Econimics in One Lesson

June 12, 2020 Lonnie Wibberding
Umpqua Connect
Econimics in One Lesson
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Umpqua Connect
Econimics in One Lesson
Jun 12, 2020
Lonnie Wibberding

A short devotional on Proverbs 12:14. For more ways to connect visit UmpquaConnect.org.

Show Notes Transcript

A short devotional on Proverbs 12:14. For more ways to connect visit UmpquaConnect.org.

Good Morning! I'm your host Lonnie Wibberding, and you are listening to Umpqua Connect. A daily devotional podcast sent out from the beautiful Umpqua Valley of Southern Oregon.

Today is Friday, June 12, 2020

Like yesterday, our Proverb for the day is a deep life insight in just a few words.

Several years ago I decided to learn more about economics. I heard words like GDP, federal reserve, and inflation. I wondered what all these mean, and how do they all interrelate? This started me on about a two year journey, because the deeper I dug, the more interesting it got.

I read classics like, "On the Wealth of Nations", the four volume set by Adam Smith published in 1776. And more modern books like "The Undercover Economist" by Tim Harford (my favorite economics book by the way). And over a dozen more.

After all this study, and all the complication, I figured out economics comes down to one thing -- wealth comes from creating value. That is the basis of all economics. The rest is just figuring out where that value is created and how it's distributed in society.

A government can print millions of dollars, or euros, or pesos. But if there are not valuable products and services to buy, the currency is worthless. Wealth comes from creating those valuable products and services.

Sometimes you have all the skills you need to create value. If you are a plumber and someone's sewer is backed up, it is valuable to them for you to have the skills and tools to unclog it. You create value for them by fixing their problem.

But sometimes you don't have all the resources you need. Often by making agreements with other people, they can bring talents that you don't have. Many a person has done well in business by bringing in talent they didn't naturally have and together creating more value than separately.

This took me awhile to figure out. But in today's text all this is captured in two lines.

Proverbs 12:14 says:

From the fruit of their lips people are filled with good things,
    and the work of their hands brings them reward.

It's a simple proverb, but profound in it's depth. This is how wealth is created in society. Either by working with our hands (and minds) to create valuable products or services. Or making agreements (fruit of our lips) with people to work together to create bigger wealth than we can separately.

In two lines, Solomon nails all of economics that took me two years to figure out.

From the fruit of their lips people are filled with good things,
    and the work of their hands brings them reward.

Thanks for connecting.

May God Bless your day. We'll talk again tomorrow