Emmett & Economics

“In the 71 years that I’ve known him, I have never seen him so fanatic in this before.” Edward commented. “Ever.”

“It’s fun though, seeing him like that,” I replied. “And he looks really smart in those glasses.”

“Are you saying that I look dumb most of the time?” Emmett called out from the other side of the living room.

My face heated, “I keep forgetting that you can hear like bats.”

“It’s not always enjoyable. When someone knocks an object over, it’s ear shattering.” Edward smiled.

“Why do I have the feeling that the knocking-something-over-part only applies to me?”

“‘Cause it does.” Emmett laughed. He came over to where Edward and I were sitting with his books and lay them down on the coffee table. “Alright Bella, let’s get started!”

I gave him a dumbfounded look. “Get started on what?”

Emmett skimmed through a few pages and then held the book open for me to read.

“How it works.” I read aloud. “How what works? Would you care to explain… I’m a bit lost here.”

“Eddie over here told me you have some problems grasping the mechanics of Economics. Beautiful subject by the way. So, big brother Emmett is teaching you the basics of it.” He grinned. “Heck, it even saves you a few bucks… you don’t have to hire a tutor.”

“That’s very kind of you Emmett, but I don’t think that it will be of any use… graduation is only weeks away y’know. I’m not studying to be an economic or anything.”

“Still, more power to you if you understand it.” Emmett persuaded. “Now let’s begin lesson number one!”

I looked over to Edward for some help. Economics wasn’t my thing. But he looked away the minute our eyes made contact. Grrr. Was that a hint of a smile?

“So, what shall we start with? Inflation? Interest? Stock market?” Emmett said excitedly.

“Wait, why are you wearing glasses, Emmett? I thought that your eyes were supposed to be 20/20, being a vampire and all?”

“He likes it because he thinks it makes him look sophisticated.” Edward said with a small smile. “I don’t see much of a difference though.”

Emmett tried to kick Edward from under the table, but Edward shifted his leg before Emmett could touch him. “Stop going through my head. Maybe I should start wrapping aluminium foil around my head.”

“Like that’s going to work,” Edward scoffed, “Anyway, we’re getting off track. Emmett, if you will continue?” Edward made a gesture with his hand.

“Right. Well, let’s start with something fun.” Emmett rubbed his hands together and adjusted his glasses. “The depreciation of the American dollar with regard to the Euro.” He then looked around, sped off, and returned in less than two seconds. He was now cradling a porcelain piggybank in his left arm. “To make it more understandable, I’ve brought some props.” He held the piggybank upside down, plugged it open, and retrieved a silver-coloured coin with a gold-coloured lining and a one dollar coin. “1 euro and 1 dollar.” He said, putting the two coins down on the table. “So depreciation means that a currency loses some of its value. Take for example this dollar coin. What happens when it depreciates?”

“Er.. you can’t buy as much anymore?” I said uncertainly.

“Correct!” He grinned. “Your purchasing power has gone down. See? This is fun! Now, can you tell me why it is that you can’t buy as much anymore?”

I shook my head. “Not a clue.”

“It’s not that hard actually. Because the dollar has lost some of its value, the United States of America cannot import as much anymore. The prices have gone up for us since the dollar has become less valuable. You can’t buy as much for the same amount of money anymore.”

I nodded. “This is not so complicated.”

Edward reached out for the remote control and started to flip through channels. “This is starting to get dull, you guys continue without me.”

“He already explained this to you, hasn’t he?” I guessed.

“Countless of times. Even though I keep insisting that I have already studied the subject before.” Edward replied.

“Enough with the chitchatting, let’s continue,” Emmett interjected. “Okay, so even though the US can’t import as much anymore, we still have to live. The import is thus necessary. Now, companies aren’t crazy, they increase the prices of their products to compensate. This is called import inflation. Unfortunately, inflation is not good for consumers or companies. The companies have to have a high place concerning competition, but because of the high prices, that position will be low. Are you still following me?”

“I think so. But I thought that the depreciation of the dollar was also something good?”

“That’s right!” Emmett said excitedly. “Due to the fact that the dollar has lost some of its value, it will be cheaper for foreign countries to buy our products. The ask for our products will rise, which means that our place in competition will rise. This has good effects for the employment since companies will have to satisfy their customers’ ask.”

“So the depreciation of the dollar has both good and bad sides.” I said.

“Exactly.” Emmett replied. “It can also lead to appreciation, but that’s for another time.”

“But what about the Euro then?” I picked up the small coin and twirled it around.

“Well, since the euro is more valuable, Europe will be able to buy more, so it is a good thing for consumers. It is however, not so favourable for export companies. You see, their products will be more expensive for buyers from, for example, the USA.”

“Which means that their competition position will be lower than before.” I said.

“Yes! You’ve got it Bella!” Emmett threw a fist in the air.”

“This is pretty easy!” I smiled. “Who knew Economics could be this fun!”

“I did. But of course, there is a lot more concerning Economics.”

“Of course.” I nodded.

“Maybe we can talk about something else next time.” Emmett said, picking up his books. “I have a date with Rose in ten minutes and if I’m going to be late, she is not going to appreciate that. Get it? Get it? Appreciate, depreciate?” His laughter boomed through the house as he sped of.

“He’s funny.” I laughed.

The End.

A/N: It’s possible that this is economically incorrect. You have no idea how much I had to reach out for the English dictionary while typing this up XD