Here's a short story that's become a kind of classic in basic economics, which could apply to our current economic situation.
A man lived by the side of the road and sold hot dogs. He was hard of hearing, so he had no radio. He had trouble with his eyes, so he read no newspapers. But he sold great hot dogs.
He put up a sign on the roadside telling folk how good they were. He stood on the side of the road and cried; “BUY A HOT DOG”
And people bought.
To meet demand he increased his meat and bun orders. He bought a bigger stove to take care of his trade. He got his son home from college to help him. But then something happened!
His well educated son said, “Father, haven't you been listening to the radio? Some people say we are heading for a decline in business. There may be a big recession coming on. You'd better prepare for poor trade."
On hearing this the father thought, “well, my son's been to college, he reads the papers, and he listens to the radio, and he ought to know.” So the father cut down on his meat and roll orders, took down his advertising signs, and no longer bothered to stand out by the roadside and sell hot dogs.
AND HIS HOT DOG SALES FELL ALMOST OVERNIGHT.
“You're right, son!” the father said to the boy.
“WE ARE CERTAINLY HEADED FOR A RECESSION.”
A simple story but it has a lot of truth to it.....
