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The 7 Basic Precepts That Govern Life & Events
Home Business Management
By: Sanford Kahn Email Article
Word Count: 1205 Digg it | Del.icio.us it | Google it | StumbleUpon it

  

The Seven Precepts were developed to give people a different and realistic view on life and events—devoid of popular myths and seductive illusions. They are based in part on my 30 years of experience as an economic/business author and speaker. The precepts are based on the classical definition of economics—the study of human behavior in its historical setting. In other words, economics is psychology.

These precepts are unique in that they are the result of combining the laws of economics, sociology, and physics into a set of seven basic statements to be used as a guidepost, to make your life more enjoyable and understandable. They are not religious dogma, but instead are a reference for confronting and resolving many of life’s conflicts.

Precept #1

The eternal truth of the universe is that all actions provoke reactions. In human terms these reactions or consequences may be positive or negative. Someone or something has to pay a price or cost. There are no free lunches.

For example, in interpersonal relationships, honest communication is both important and essential. You can control the "what and when" of your communication, but you can not control the resulting impact (positive or negative) it has on the other person. This, honest or otherwise, is the cost or price of your communication.

Another example—in economics you can not simultaneously control the cost and quantity of any product or service. If you try to control the cost (price controls), the quantity (and quality) decreases. This is the result of trying to control the price of any product or service.

There are always consequences or costs to any action taken by an individual and their consequences have to be weighed against the cost of the proposed action.

Precept #2

In physics there exists a law titled the "conservation of matter". It basically states that matter can not be easily created or destroyed. However, the states of matter can be changed. For example, by applying enough heat to a solid you can transform it into a liquid, as with ice. A liquid heated to the boiling point can be changed into a gas. In all cases they are still the original matter, but in a different state.

In a similar vein, using the law of the conservation of matter, there exists in all societies a conservation of personal power. It states that Personal Power can neither be created nor destroyed, but it can be transferred.

Societies have two and only two broad options

. Through their respective governments, they can institute policies that will empower the individual or policies that will empower government. If you wish to empower the government for greater economic stability, then you must transfer some of your personal power to it.

There are consequences to both broad options (Precept #1). One set of policies will lead to a growing set of opportunities for advancement while the other will lead to dependence and stagnation.

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Sanford Kahn is a Business Speaker.

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