Harold Lasswell was an American political scientist and communication theorist. For those who study economics and communication, he’s the guru of the model of communication style that focuses on “Who says what to whom in what channel with what effect.”
He defined “Economics” as the study of how societies allocate scarce resources, deciding what to produce, how and for whom.
He defined “Politics” as the process of deciding who gets what, when and how (in fact, he wrote the book on this!).
As business owners, we use the mechanics of our economic system to produce products or provide services for people. We produce income in order to provide for ourselves and our families, and if we’re fortunate, a little profit. Profits can be difficult to make because of taxes and regulations. Those things are decided upon by politicians.
In other words, the economy tells us what we can do. Politicians choose what we actually do.
We know that the rules of the game are determined by those with the biggest wallets and their lobbyists who have the politicians in their back pocket. As Mark Twain once said about Congress, “Suppose you were an idiot. And suppose you were a member of Congress. But I repeat myself…”
We’re in the preview months of a presidential election cycle, the craziest, most confusing election cycle most of us can remember. Read much, stay focused. Get to know the candidates inside and out. The one we choose will determine our future economy.