Now and Later.

Humans most times think of actions only in terms of short-run benefits (the here and now). We make decisions based solely on the returns we’ll get from such a resolution in the now without asking what long-run implications it will have. Don’t mind Keynes who said we’ll all be dead in the long-run. Remember that economics as a way of thinking helps us cone to terms with the consequences of the choices we make.

The actions we take as humans are usually motivated by the rewards we’ll get or not get from taking them. It is rare to find people do things they know won’t bring them any reward. In fact the higher the rewards of an action, the more likely it will be taken and the lower the rewards, the less likely it will be taken. That is, to increase the likelihood that an action will be taken, simply increase the reward (or reduce the cost) obtainable from taking such action. On the other hand, reduce the reward (or increase the cost) obtainable from a course of action and you’ll find people reduce the chances of carrying it out.

It must however be understood that while some actions carry short-run benefits and long-run costs others have short-run costs and long-run benefits. More often than not, we make decisions based on what rewards we’ll get now. It is possible some of us act like this because we have not been trained to think of actions in terms of benefits and costs on the one hand and in terms of long-run and short-run effects on the other.

You might however ask, “how do I know what a short-run or long-run in my circumstance is?” It is not a question with a linear answer. The answer to this question is found in the circumstances surrounding the actions we take or decisions we’ve made.

Five or ten years down the line, would you be better off or worse off being in that relationship you’re in despite the momentary enjoyment you are deriving from it? Five or ten years from now, what career path do you see for yourself given your present engagement? How easy or difficult would it be for you to make a switch to something you think is better some years from now? What will be the effect on your bowel in the morning of that extra bowl of ice cream you want to consume? Outside the context it’s being analyzed, it’s usually difficult to explain the long-run and short-run concepts

While I understand that the exigencies of the present can drive us to take actions without thinking them through, it is important we stop a while and think through the actions we take especially as we know that they’ll have some effects on us beyond now.

I think it will be better to endure the present discomfort of walking on a chosen path which you know will bring you future rewards. What do you think?

I know in the long-run we are not all dead because the long-run is the sum of various short-runs!

Be inspired!

Remain motivated!

WHAT IS, WHAT OUGHT TO BE AND THE NIGERIAN DILEMA

I am one economist who de-emphasizes what is for what ought to be (the unending positive economics vs normative economics debate). A concentration on what is, locks one in a box and limits the ability to reach for the possible. In Nigeria, we know what is and what ought to be but we go for what is.

Having square pegs in round holes in Nigeria is what is, and we prefer it.

Assuming national duties by virtue of state of origin, religion, tribe and/or personal affiliations is what is and is preferred in Nigeria above competence, capacity to deliver and know-how (what ought to be). In fact, we are ready to go on protests to protect “our own” (when s/he’s brought under scrutiny) that has clearly demonstrated incompetence and brazenly looted our commonwealth. This is what is and we love it! The result of this preference is seen on our tattered roads, in a dilapidated educational system, in unsecured security forces and in a broken social structure.

However, it is not unlikely to find exceptions to rules such as this in Nigeria in very unlikely places. One of such places is the position of head coach of Nigeria’s national senior football team (the Super Eagles). On Wednesday, 15^th July, 2015, the Nigerian Football Federation (NFF) unveiled former Nigerian player, Sunday Oliseh as the new head coach of the Super Eagles. A position that had in the recent past been held by Austine Egwavoen, Samson Siasia and Stephen Keshi, all from the South-South region of the country. In all the conversations I listened to surrounding the drama of Keshi’s exit and Oliseh’s enthronement, not one Nigerian went for the usual what is, that is, nobody flew the tribal/sectional kite in the selection of Oliseh knowing fully, where his predecessors had come from. Everyone instead was more interested in Oliseh’s capacity to deliver (what ought to be) hence the controversy over his ability judging from his lack of experience managing a football team before now. This deficiency though, I heard Nigerians rallying fellow countrymen around him so he won’t fail. I heard people compare him to other untested coaches who eventually did very well and have pumped themselves high on optimism. Let me repeat that I have not heard anybody complain about a particular region dominating that position (unlike us!).

While I have nothing against football nor any other sport for that matter, I wish to submit here that there is no amount of laurels we win in football that will build our schools, roads, hospitals, improve our living standards nor mend our broken society (I want to see a society where this happened).

Fellow Nigerians, is it possible for us to channel this sense of what ought to be to other (I dare say) more important areas of our national life where it is hugely important to score policy goals because lives practically depend on it. Can we jettison sectionalism, favoritism and nepotism (like we have consciously done in the appointment of a football coach for Nigeria) and rally round our country within the extra time we have before it is game over?

YOUR PRODUCTIVE POSSIBILITIES FRONTIER

In economics, the production possibilities frontier represents the possible combinations of two goods that can be produced in a certain period of time under the conditions of a given state of technology and fully employed resources.
A country operating within the frontier is said to be under-utilizing its resources while the one that has moved outward and is along the frontier is seen to be fully utilizing its resources. However, it takes deliberate and calculated actions for any country to move outward from within the frontier.
In the production possibilities frontier, the more of a good you choose to produce, the less of the other you produce. It presents a trade-off (a core concept in economics).
Now coming to you. What output goals have you set for yourself for the rest of the year? That is, what are the things you have set out to achieve in the last half of the year given your productive capacity? Remember we said earlier that in  production possibilities frontiers, the more of good x you produce, the less of good y you will produce.
Dear friend, there are certain things you need to pay less attention to in your life because they contribute very little to the desired outcome you long to see- better education, financial freedom, better health, healthy relationships, upward career movement, and so on. If any of these outcomes resonate with you but you are not getting them, then there is a problem with how you combine your productive capacity.
You see, your productivity is measured by how much value you add to yourself and your environment per unit of TIME. Therefore, there is the need for you to take stock of what you have (time, money, innate ability, people, etc.) and understand how to combine them to produce the outcome you desire.
The last half of this year is yours to take. Don't feel overwhelmed by the negative circumstances around you (this writer deals with them everyday). Keep your eye on the GOAL; however, strive to meet daily or weekly or monthly TARGETS as you aim to score. Remember, it takes deliberate and calculated actions to get the desired outcome!

Be Inspired!
Remain Motivated!

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