This quote by Charlie Munger is a critique of traditional economics and a nod towards the emerging field of behavioral economics. Traditional economics often assumes that humans are perfectly rational beings who always act in their own best interest to maximize utility. However, Munger is implying that this is an incomplete view. He suggests that economics must inherently be behavioral because it involves human behavior, which can often be irrational, emotional, and unpredictable.

The quote essentially means that economics, a field often associated with numbers and charts, is ultimately about people and their behaviors. If it isn’t about behavior, then what else could it be about? This is a rhetorical question that Munger uses to emphasize his point.

In the context of today’s world, this quote has significant implications. For instance, policy makers who understand the behavioral aspect of economics can design more effective policies. They can anticipate that people may not always act rationally and can implement measures to nudge people towards making better economic decisions.

In terms of personal development, understanding that economics is behavioral could help individuals make better financial decisions. For example, recognizing that they might be prone to irrational behaviors such as overspending or making risky investments, individuals can take steps to mitigate these behaviors and make more rational economic decisions. They might set up automatic savings plans, for instance, or seek advice from financial advisors to avoid making impulsive decisions.

In essence, Munger’s quote is a call to recognize the complex, often messy reality of human behavior in economics. By acknowledging this reality, we can make better economic policies and personal financial decisions.