Supply & Demand and its Implications

Supply and demand is a simple concept in economics. The more something is wanted, the more is valued. Alternatively, the more it is readily available, the less it is valued.

A simple example is gold and oxygen. One is a shiny lump of metal. The other is the elixir of life.

Which one is worth more? The yellow material with niche applications in electronics or the very thing keeping us alive? If you are an alien you might answer the latter but you, a human, already know the answer.

It is gold simply because there is a fixed amount of it on Earth and producing more is costly and inefficient. On the other hand, oxygen is free because it is constantly replenished by trees. Funnily enough the whole concept of alchemy is required to fail if gold is to keep its value. The moment common lead could be turned into gold is the moment gold’s worth will be forever lowered.

This applies to humans. Of course it does. Here’s how.

Skills are what make a human. Character is just the manifestation of those skills. The ability to be kind, the ability to be charming, the ability to be deadly. All the skills of a person coalesce to become their identity. Now if you want to be valued, guess what you need to do? I think you can see where I’m going through with this.

To be seen as elite, you need skills and certifications that most don’t have. You need to have skills most can’t do or won’t want to invest time into. We respect the faster runner, the fastest swimmer, the strongest fighter simply because that person can reach heights no one else can. Anyone can run slow. Not everyone can run fast.

So, to make it big, as it were, we will need to first decide what skills are worth pursuing. Not all skills are worthwhile. Society rewards skills for some things much more than others. Being a decently average lawyer pays more than being the world’s best at collecting dirt. Utilizing the highest leverage skills to propel oneself forward is the smart way of going about things.

Now what you need to do is look inward. What am I good at? What passions do I have? What does the market reward? The intersection of the 3 is your sweet spot. This will not be easy (peering into the cosmos of your mind never is) but it is well worth it. Dealing with the tough questions now is better than years of regret down the line.

Till next week!