January 5, 2017

Creating Economic Assets out of Nothing

One of the magical things about economics is that you can create an economic asset out of nothing but persuasion. For example, if you persuade people to be more optimistic about the economy, people invest more money, buy more products, create more jobs, and generally manifest the better economy from their own expectations. This magic of creating wealth from nothing but persuasion is one of the reasons President-elect Trump will be different from other presidents. He knows how to do this particular brand of economic magic. He has been doing it for years with his own company. The more common names for this phenomenon are branding and licensing. Companies license the Trump name for their buildings and other products because they recognize the name as a psychological asset that Trump created by persuasion.

Read more at http://blog.dilbert.com/post/155392710916/creating-economic-assets-out-of-nothing

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