Economics is about choice, not money

Economists like complicating an already complicated life with their esoteric equations and graphs. They talk of indifference and utility curves, which, in layman’s language, are about choice and its close associate, happiness.

The many hours of our lives that we devote to the ceaseless chase after money can be summed up in one word: choice.

In reality, no one needs money — it is the freedom to choose that one needs.

The tragedy about this nugget of wisdom is that most people come to learn of it late in life, when the damage is already done.

It is unfortunate that most people make money late in life, when their choices are limited. Those who make money when they have choices are often destroyed by them.

Think about it. If you become affluent in your 20s, you will probably have problems making choices on cars, homes, friends, mates, etc. Because you have too many choices, you will probably pick the wrong ones.

That is why some offspring of the affluent have issues; their parents’ wealth gives them too many choices, including abusing alcohol and drugs.

The children of the poor suffer the same fate because they have too few choices.

Making your children responsible enough to make the right choices should be the duty of every parent.

If you make money late in life, you will probably find it hard to make choices because of limited energy.

 Cradle to grave

Money is useless unless it is put to use through choices. Think of your life from cradle to grave. If you have money, you can choose where your child will be born, and even when and where he or she will be conceived.

You can choose the school system your children will follow, and whether they will pursue their higher education locally or abroad.

If your parents lack means, you will study whatever is available and then worry about getting a job later.

That is why social sciences are flooded — because they are cheaper, and poorer students have no choice for other professional courses.

After school, and if affluent, you have more choices on jobs because you have a bigger network.

How many people in your parents’ phonebook can make things move? If you were to be arrested today, who would you call?

Some professions give you more choices. An engineer may have more job opportunities globally compared to, for instance, an archaeologist.

Socially, money leads to more choices. You have a chance to meet more people of both genders because you can frequent more places. You are more likely to be well-travelled, which reduces the probability of marrying your neighbour.

It is choice, more than anything else, that makes us seek money using all means, including corruption. The problem with getting money corruptly is that it reduces your choices — you may feel at home only in the company of equally corrupt people.

At the national level, countries also look for choices. That is why, although Japan makes cars, they also import cars. The French make wine, but also import it.

The failure to realise that money is about choices, not its accumulation, has been our soft underbelly.

The sorry state of countries that have stagnated has a lot to do with the way their leaders view money.

Sharing money

Banks were invented not to keep money, but to increase choices so that those who have money but can’t choose what to do with it can allow those with choices to get it at a fee (interest rate).

Even the taxation system is about choices. You share your hard-earned money with the less fortunate to uplift their living standards and enable them access services they would never have accessed. Philanthropy is about giving choices to those without.

Democracy is about choices, too. We have the freedom to choose who leads us. But often, that never happens because some politicians long realised that if people are left free to choose, they may not win seats, so they influence voters’ choices through money or propaganda.

In spiritual matters, there are also choices. You can chose the religion you want, though most people follow their parents’.

Where do we go from here?

The reported cases of corruption in Kenya, from Goldenberg to the Lang’ata Road Primary School land saga, are symptoms of a country where a few people have limitless choices, while a majority have no choice. How many Kenyans have a choice on where to live, go to school, shop or whom to marry?

Development and economic growth are about providing citizens with choices. That is why the private and public sectors co-exist, to provide us with choice.

We aspire to become affluent to have more choices.

It would be interesting to read through the Constitution and see what choices Kenyans were given or denied. The word choice appears only twice in the whole document!

When you make money, either through entrepreneurship or employment, ask yourself if it will give you more choices. Some people take low-paying jobs because they get choices like more free time.

Students should realise that if they are disciplined enough to accept fewer choices when in school, they will get more choices later in life.

As we live our lives, we should realise it is all about choice. We even choose where to be buried and who will inherit our wealth or fight over it. Economics is about choices not money.

The writer is a lecturer at the University of Nairobi.

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