How do we as people affect the economy? I am writing a paper about it but am having a hard time.?

Question

PLease Help

Answer 1

Mainly in consumption. As everyone has already mentioned, when you buy you drive the economy.
In Gross Domestic Product, Consumption accounts for the majority of that GDP. Thats why you hear things on the news such as " consumer confidence was up..." or why Bush said things like 'keep flying, keep shopping' after 9/11.

Other things we can do is to save money or not to save money.
The Four Asian Tiger economies grew mainly through industrial coordination by government, exports and extremely high personal savings rates which allowed borrowing for investments to occur without the vagaries of foreign investments capital.

Marginal product of labour (MPL) is another thing that people can affect. The more educated a population is, the higher the value of the product they can produce (and the more they get paid). Another way to get greater MPL is to accept lower wages. Manual labour output is usually unaffected by high levels of education. So if an uneducated, poor person in China or Malaysia will accept a wage much lower than a similar person in the USA, they will produce more product for the same amount of money.

Politics... if you demand, as a people, to have better public schools, better roads etc, government has to pay for it. They do so by increasing taxes. This causes a redistribution of funds from those who pay taxes and the total of society who benefits from the increased standard of living. This process causes a lot of different effects throughout the economy.

Hope it helps

Peace

Answer 2

RJF has it right.

In the U.S. the economy is 60-70% consumer based. That means, for the most part, WE ARE the economy. What we do as consumers hugely affects the marketplace. Further, with national economies tied together through trade & stock markets, it's really a global situation now.

Good Luck!

;-)

Answer 3

give it a heading TO BUY OR NOT TO BUY

then start explaining the fundamental changes that would be made to the economy if people started buying allot of a particular product and what would happen if people stopped buying a particular product.... example if thousands of people stopped buying petrol and the affects it would have on the huge network of oil making industries , how if one company goes bankrupt and liquidizes then other companies associated with it will soon follow ......

Answer 4

Buy a quart of milk. You provide jobs for:

sales clerk
stock boy
store manager
milk distributer
milk bottling plant
dairy distributer
farmer
feed lot
cow

and there are many others who support each job and indirectly profit from that quart of milk

Answer 5

cause we're users. without users there's nothing. with nothing there is no ecomomy. go the users. go the power. power uses users because everyone wants something and there's always someone that can provide it. fiscal policies aside the law of nature says that there's the quick and then there's the dead. welcome economy.....

Answer 6

we stereo type each other
we think up trends and make it seem as if one type of look is beautiful
we discriminate/disdainful
we don't care about others
we all want to be the best