The Value of Economics in Everyday Life
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It was the strangest thing. It all began on the evening of June 15th
2008. My grandmother passed away. This was weird because no
body even knew she was dying. Well maybe it was just her time to go.
It was a very rough couple of days. My sisters, my mother and I set up
the calling hours for her wake, and the time and place for her funeral. It
was vary hard to concentrate on these tasks when one of our loved
ones had passed away.
About two weeks had passed and things were begging to return
to normal. It had been a tremendous loss for our family, but we all
knew that we had to get on with our lives.
I recall a message that was left on my mother’s answering
machine reporting that my grandmother had written a will. It was
discovered when all of her things were being cleaned out of her home.
Not a single soul within my grandmother’s family knew about this will,
so it was a big surprise. The message on the machine clearly stated
that the will was going to be opened and read to the family, on July 5,
2005 at 1:00 p.m. at the county court house. Everyone was anxious to
find out just what he had left. No body was expecting much because
they knew my grandmother didn’t have very much. She had raised
seven children on her own.
The day had finally come. It was just about 1:00 p.m. and the
will was being opened. It read as follows:
“Well all, I guess it was my time to go. I am in a better place
now, where there is no suffering or pain. I need you all to promise me
that you will be happy for me. I know it is hard to do, but it is for the
best. Now I need you all to take a deep breath for there is something
that you all must know. I have been saving some things up over the
last 50 years, mainly because I knew this day was
coming, I just wasn’t sure when. You all know that I was one for
money. We never had much, so when I made a little extra, I was
investing it in large corporations, trying to make a few bucks. After
quite a few years, I have managed to acquire $120 million to split
between you all. Now, you all aren’t getting the same, but remember to
be happy with what you get, because it could has been nothing.
To Patty, Marylyn, Steve, Mickey, and Debbie, I leave $2 million
each. I know this doesn’t seem like a lot, but when I was put in the
nursing home, not one of you bothered to visit me. I am ashamed of
you all. You were raised better.
To Sally, I leave my home in Sandfordville, (including the 300
acres) and my camp in South Colton. I love you Sally. You took good
care of me, and I will never forget that. I am also giving you $10 million
to use for what you please!
Lastly, to Diane and girls. Well what to I say to all of you? You
put your lives on hold for me. When I became dependent on others,
you were there to feed me and bathe me. You loved me
unconditionally, so with this reason I leave you each $20 million.
Diane, go do something nice for yourself, and girl, MAKE GRAMMY
PROUD! Remember that I do love you all the same, but this is the way
it must be.”
Two years had passed, and I had just graduated from college,
majoring in business management. By this time, I had only used up
about $1 million paying off college loans, a car payment, and an
occasional outfit or 2, or 200! But I was bored. I had a little of $19
million and education, and no place to use it. That soon was about to
It was one night in my dreams that it all came to me. I had
always wanted to run an over-under bar in Potsdam, NY, but I was
either too young, or too poor. I was still young at the time, but that
wasn’t going to hinder my plans this time!
I jumped out of bed and grabbed a piece of paper and started
jotting things down. I knew that I wanted to it to be three levels. The
basement was to be a café-snack-bar, the first floor would be the “Big”
dance area with a soda-juice bar, and the second floor was to be the 21
and over bar with the “smaller” dance area. I knew that my idea would
work as long as I didn’t was any time. I went back to bed and set my
alarm for 5:00 a.m.
The next morning I called my sisters and had them come over for
breakfast. While eating, I told them all about the dream I had the night
before, and then showed them my sketches. They were amazed and
decided that all four of us should be part of the business together,
seeming that four heads are better than one. Being partners we knew
we would be able to make more money, and have a bigger opportunity
for growth, because we would have more money and brainpower. I
also know that if we were partners, we would sometimes disagree, so
we decided that since it was my plan, I would be the head (general)
partner, with the decision making power, and my they would just be
limited partners, investing money and helping out here and there.
Within the first year that we had inherited the money, my sisters had
already began their own businesses. (Which I was already involved in.)
This was good because we would all be pooling our money together
Then the work began. I knew that I was going to need to
consider the four economic resources: Land, Labor, Capitol, and
Entrepreneurship. I already had the capitol, now I just need to work on
The next morning my sisters and I went to Potsdam to find a
location for the bar. It was only about an hour before we found our
perfect building. It would only cost $1,000 a month for rent, which
wasn’t too bad. I decided to only pay by the month just in case the
business was a failure.
Over the next month we had “The Galaxy” built. It totaled up to
about $200,000 to create it. During this process I began hiring my staff.
I out an ad in the paper for semi-skilled employees, who knew about
the trade, and had some experience with it. I knew that it would be
easier for me to hire people with the education, so that I wasn’t always
training. I had a ton of other responsibilities. I also hired the people
who enjoyed the “night life” atmosphere. This was because I
knew that employees were more productive in a “suiting” atmosphere.
My biggest surprise came when Brian Flannery from the bar “Cocktail,”
applied. He was the best-know bartender around. Needless to say, he
got the job! I never thought I would find the right DJ for my club, but to
my surprise, DJ Jazzy Jeff had showed up at my doorstep. He
informed me that the whole Country knew about this new club. Once
again, another star was hired! I was in Luck, and things were looking
Now I was ready for entrepreneurship. I needed to make my
IDEA of this business works in reality. I knew that I wouldn’t have a
problem with competitors being the only Over-Under bar around. My
business was to be a monopoly, leading to inelasticity because there
were few available substitutes in the area. Also, I will be able to serve
the public with their needs. Before I began building, I had taken a
survey in the town, and it ended up that more people would come to
The Galaxy than go to Canada. Most 18-20 year olds were more likely
to just dance, or be the designated driver. They said it was a hassle to
drive a half an hour or more to just go and do the same thing.
Before opening I need to get my last supplies. First on my list
Were my liquor license, and the beverages. A new liquor store in
Brasher by the name of the LaFave’s Liquor had just opened. I was
good friends with the owner, Mark, so I called him up and asked him for
a deal. I told him that alcohol was in high demand so I would be
buying in bulk so as to maintain my supply. Mark agreed to sell to me
as long as I had signs up in my bar stating that I purchase my liquor
from LAFAVE’S LIQUOR. I agreed leading to a voluntary trade with
both of our benefits outweighing our costs. I spent about $100,000 on
my first enormous supply of alcohol. Mark was very pleased. J
Next I called my cousin Mike from Coca-Cola. He provided the
Soda-Juice bar for about $5,000. I swear with the amount of beverages
we had, that we would NEVER run out! His brother Steven was also
the head of the restaurant “Stars”, so I hired him, and he moved his
business to my basement. He was now one of my employees.
Well now diary, it’s opening night, so I have to get my behind to
work. Can’t be late the first day. I will write tomorrow!
Dear Diary, June 16, 2007
WOW… that is all I can say. What a hit everything was. I made
all of the money I spent on starting this place and then some. You
would never believe who was there! I think I saw more than ten
movies stars. I met Brad Pitt and Jennifer Anniston, Dave Matthews,
Tom Cruise, Brittany Spears, Mel Gibson, Neve Campbell, Ricky
Martin, and I even think I saw Madonna! They flew in from everywhere!
I even heard rumor that it is the new nightclub of choice for the stars to
go on the weekends. They even came in private jets. My dream came
true, because I knew how to use my skill in economics. I think I want
to give a shout out to my 12th grade economics teacher…THANKS
P.S. I think I will invest most of my money like my Grammy.
I figure that if I save it I could be hurt by inflation in the long run. My
money won’t be worth as much, and we don’t want that now do we??