The first principle of economics is: Everything has a cost. This applies equally well to financial, political and social economics. It’s the very foundation that the current form of our society is built on. It’s a common misconception that cost can only be paid with a monetary price, such as money. But ultimately cost can be paid with other things.
The term “There ain’t no such thing as a free lunch” dates back to the 19th century where saloons in America used to serve free lunches to patrons who had purchased at least one drink before. The trick, however, was that the food always contained a lot of salt (e.g. ham, cheese and salted crackers), which in the end lead to thirsty patrons buying more drinks and thus generating a larger profit for the saloon. Continue reading “There ain’t no such thing as a free lunch”