For many of us, aside from economists and financial analysts, the basic principles of economics that drive the global financial system are something that we may have been exposed to briefly in an academic setting during our education, but that we rarely acknowledge as we go about our daily lives.
It’s one thing to learn about the theories of economics, and another thing entirely to see those economic principles at work in our lives and our finances, and to use them to inform us about the influences at play in our company or our country.
“The economy works like a simple machine. But many people don’t understand it— or they don’t agree on how it works — and this has led to a lot of needless economic suffering.
I feel a deep sense of responsibility to share my simple but practical economic template. Though it’s unconventional, it has helped me to anticipate and sidestep the global financial crisis, and has worked well for me for over 30 years.” – Ray Dalio
Do yourself a favor and spend 30 minutes getting a grasp on the principles of economics that drive the economic machine, by watching this informative animated video from Dalio:
For a more in-depth look at these economic principles, including a downloadable PDF of the information in text form, go to EconomicPrinciples.org.
[h/t to Good]