Monday, 30 July 2012

Economic crisis: The hot-dog story...

The CRISIS from a hot-dog stand point of view. 
Once upon a time (this is how every story should start...), a man lived on the edge of a road and sold hot-dogs. He had no radio, television and did not even read newspapers but produced and sold the best hot-dogs in the region. He was normally worried about the disclosure of  his business so he would put signs on the road, offered his product in an out loud voice ... people would come, bought and loved his hot-dogs.Sales were increasing, so he would buy the best bread and best sausages. It was also necessary to acquire a larger stove to meet the large number of customers. So the business prospered... and his hot-dogs were the best of the region.
With the money he earned was able to pay his son a good school. The boy grew up and went to study economics in one of the best colleges in the country. 


When the son graduated, he returned home and noticed that his father continued with business as usual, selling hot-dogs made with the finest ingredients and spending money on posters. Seeing this he decided to have a serious conversation with her father, "Father, why don't you listen to the radio, watch TV, read the papers? There is a great crisis in the world and the situation of our country is critical. We must save!"
After listening to the his son's considerations, the father thought, "Well, if my son who studied economics in a good Faculty, reads newspapers, watches television and internet, I should assume that he can only be right!"
 Afraid of the crisis, the father sought a cheaper supplier of bread (cheaper quality), started to buy cheaper sausages (less quality as well). To save money, the father stopped making posters to put on the side of the roads. Slaughtered by the news of the crisis the father stopped as well offering his product aloud.

After taking these 'steps', the sales began to fall
until reaching unbearable levels. The business of hot-dogs the that once generated funds... failed. The father, sad, told his son, "You were right son, we are in the midst of a major crisis." And to his friends he would say proudly, "Blessed the hour in which I have put my son to study economics, he was the one that told about this crisis... hopefully my savings will be enough." 

The MESSAGE of this story...
We live in a world tainted by bad news, if we do not take proper care of these stories end up influencing our performance and determine our success.

What you should NOT take from this story:
  • No education is needed - The first thing that you can gain with education is knowledge gain. Education gives us knowledge of the world around us. It develops in us a perspective of looking at life. It helps us build opinions and have points of view on things in life. People debate over the subject of whether education is the only thing that gives knowledge. Some may say that education is the process of gaining information about the surrounding world while knowledge is something very different. They are right. But then, information cannot be converted into knowledge without the catalyst called education. Education makes us capable of interpreting things rightly. But of course this is not just about lessons in textbooks it is as well about the lessons of life;
  • Do not follow opinions from others - listening to the opinions of others can be a good thing. Often times people have really good advice. But ultimately you must decide which advice is good or bad based upon your reasoning, logic, moral values, and personal standards;
  • Savings are not important -  Saving money is important for many reasons, these may have to do with security and safety, or the practical aspect of trying to plan ahead for major expenses. In terms of emergencies, while no one likes to think about the possibility that they will lose their job, become disabled, or have some other sort of disastrous financial crisis, the fact of the matter is that this can happen. Even smaller emergencies, such as car repairs, are better handled by having saved money along the way, as opposed to having to scrape money together during a crisis. 
If you enjoyed reading this article, please consider tipping me using Bitcoin. Bitcoin Address: 1CZMXfdyJzquJaagpHixzizuN2SxFbefTP

Blog Editor and Owner: Luis Aparicio Fernandes (or Mikey) is a Business Expert and a Traveler based in Sydney, Australia. He is a member of The International Honor Society Beta Gamma Sigma due to his achievements in business. You can follow Luis on Google+, and LinkedIn.