Tuesday, March 23, 2010

Evilomics isn't all evil?!! Maybe...

Although I'm on Spring break and school should not even be in my thoughts, microeconomics is again coming into play in my blog... Sheesh, it was such a painful class that taught me more than I would ever like to admit.

In probably one of the only chapters I understood, our class discussed why a firm would take on short-term losses for the sake of long-term gains.  In other words, a company would be willing to sell a product at a price that created losses in order to keep customers in the long run and hopefully get to a point where they would be gaining again.  Let me provide you with a nifty little graph to help demonstrate.



A company would be willing to charge $495 or even $250 (depending on the demand of consumers) even though they need to charge more in order to not have losses.

Red area is their loss.

If you don't understand... don't worry. I still don't really understand... What I want you to get is that sometimes companies are willing to take losses (being in the red) so that in the long run they will eventually gain (getting the green).

Life can be like a business.  Our goals are to stay afloat; to not have so many losses that we go under, and to receive gain; to enjoy life to the fullest.  Like a business, life has costs and benefits.  And like a business, sometimes it takes periods of costs and loss before we can enter periods of gains and benefits: taking short-term loss to receive long-term gains.

Example: Playdoh is only one of the greatest things on this planet. If you only play with your Playdoh for 15 minutes at a time rather than 1 hour your Playdoh will last longer: 1 hour of play time would most assuredly dry out the dough.  While 15 minutes is never enough time, you need to sustain that short-term loss of play time to ensure the long-term lifetime of your Playdoh.
 In reverse, sometimes short-term gains can result in long-term losses.  Say you really REALLY love cookies. In the short-term, if you eat a dozen cookies it's going to be awesome! But in the long-term you'll gain 5 pounds and you'll be less healthy. The extra weight could eventually lead to heart disease, hypertension, and then you die.

Life takes sacrifice.  Living for Jesus takes many instances of short-term loss to receive the long-term gain.  Our short time on earth is to be lived in full surrender to Christ 

Mark 8:34-35  34Then he called the crowd to him along with his disciples and said: "If anyone would come after me, he must deny himself and take up his cross and follow me35For whoever wants to save his life will lose it, but whoever loses his life for me and for the gospel will save it. (NIV)

So what are you willing to give up in the short-term so you may gain in the long-term? Sports? Maybe get involved in leadership and serving at your church.  Time? Perhaps spending your weekends getting in the Word rather than partying.  Relationships? Pursuing Christ rather than a boy or girl.

You have to give up in order to receive. (Check out this blog for more on surrender.)

So although microeconomics was one of the yuckiest classes on the face of the planet, God used it to speak to me. If He can use
evilomics He will use you! (Tangent.) 

Anyways, that was all I had to say. Thank you all for reading my blog!! I really REALLY appreciate that you all do. Especially since they seem to be getting longer. Sorry. LOVE YOU!!!

Colossians 3:1-4 
1 Since you have been raised to new life with Christ, set your sights on the realities of heaven, where Christ sits in the place of honor at God’s right hand. 2 Think about the things of heaven, not the things of earth. 3 For you died to this life, and your real life is hidden with Christ in God. 4 And when Christ, who is your life, is revealed to the whole world, you will share in all his glory. (NLT)

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