Martin Messier

October 10, 2023

An internet millionaire’s model of the economy

Several years ago, I came across this video in which Frank Kern shares his model of the economy.

(By the way, I'm not sharing this because I'm a fan of Frank Kern. I'm sharing this because it's a practical illustration of someone describing their model of the world.)

Take a quick look at the Wikipedia page about "economy" and notice how it differs from Frank's description.

Your average economist would have a heart attack listening to Frank. His model does not match the Wikipedia model.

It's what I call "modeling from the field" vs "modeling from the bleachers."

Generally speaking, you'll notice an interesting pattern when you compare and contrast academic models and operational models.

Academic models offer great descriptions of what happens in the real world, but aren't that useful to those who want to act in the real world.

Operational models, on the other hand, actually enable you to effectively navigate what's happening and act upon it.

You can't say that one is "right" and the other is "wrong." They're simply different descriptions of a phenomenon.

But one of them could help you make millions of dollars, while the other will help you sound smart at cocktail parties.

Pick your model according to the result you want.

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}