Economics... What's the Point? | A Brief Overview
Contributed by: @DISUNOMICS
What is economics?
Economics is the study of the production and consumption of goods and how wealth is transferred to produce these goods. The economy is like a big market place where all the people in the market are working, trading, interacting in a way that will benefit them. I like to describe economics as the science of choice. Economics is really about each and every person in the economy doing what is in their best interest and how this plays out!
Why do we need to care about economics?
If you like money you should probably care about economics. Economic activity is likely to decide how much money your government has to waste on pointless jihads, the environment for your business to operate in, how much your product will cost, how expensive your groceries are etc.
How does economic activity affect us?
For example the £ is currently hovering around all time lows. I’m sure you have seen plenty news stories on this with plenty graphs with wayward lines and figures! How does this affect us?
If you are a traveller you are now getting less “dollar dollar bill yo” and less Euros for the same amount of Pounds as you would before. That means your holidays are more expensive! The weaker the pound is the less foreign currency you can buy, the less spending money you have abroad. Woes.
If you are a businessman or businesswoman and you export your product abroad this could bring good news! Now foreign customers can get your goods cheaper than before. Their Euros can now collect them more Pounds than before so your product has become cheaper. The cheaper your products the more likely people are to buy it. The more people that buy your product the more revenue you collect, which means more profits. Yay
So there you have it, a short sweet explanation of why economics is probably a bit more important than we think. I have a website and a podcast which further expands on economics and how it relates to we the normal civilians of earth. If you are a cheeky bit intrigued check me out on www.disunomics.com or DISUNOMICS on soundcloud. Thanks for reading!!!