“Economy? What’s Economy?… I skipped that class.”
“Oh…Economy… It must be all about the money.”
If you genuinely ask me, Economy is the incredible force around us, while the correct definition would be that the Economy: “is an area of the production, distribution, or trade, and consumption of goods and services by different agents in a given location.”
To go directly on what I wanted to say, I am going to sum up everything in chapters:
The relationship between Scarcity & Choice
Scarcity? My favorite. Wanting to have everything while the world has limited resources. It does not really add up, does it? At the end of the day it all goes down to choice, so even if you choose everything you can only have so little.
Scarcity is a powerful concept which teaches us that there is never enough and that there is infinite power in the human mind, while it is important to make the right choice. Scarcity almost always involves making a sacrifice. You can’t choose clothes over air.. well you can, but will you?
Business Cycle and Life
A Business Cycle can be easily compared to a life of a human being, even though it is the downward and upward movement of gross domestic product (GDP). The necessary fluctuations of the Business Cycle (expansions and recessions) can represent how life is as well. You need to have the bads to have the goods and one can’t and won’t work without the other.
Supply & Demand
If you have supply and if you have demand, you must have an equilibrium as well. Easily said than done. You can’t go out every day and and never work but you can’t also work all the time and never go out. The only way to have the equlibrium of the supply and of the demand is to have balance.
Monopoly & My Ignorance
Yes, Monopoly. No, not the game, but Monopoly takes place when a person or an enterprise is the only supplier of a particular commodity. Sure, that sounds great but it is not meant to last, many jurisdictions restricts monopolies. To go directly on how knowing this affected me directly was that, it showed me how being alone never works, how trying to interiorize myself is not helpful. I had to learn and understand that things only work if you have a team. Everybody knew this all along, ignorance can really be your friend.
As a conclusion, I would bravely say, that I wanted to sum up how economy has showed me a thing or two about how life works and how you can apply economic concepts in your own life to see that somewhere, very deep, things are as they should be.
More Ideas Soon.