The economy is a constantly changing work of art. It depends on different factors from the consumer’s choice to the global market. From country to country the state of their economy can be seen through many walks of life. All countries have the elite and the poor. In America and other industrialized countries the middle class is shrinking and in underdeveloped countries the economy is starting to take off. Developed countries are dealing with the effects of industrialized business leaving and many are becoming service economies. The economy is also becoming more of a global economy instead of focusing on one country. Since it has moved to become globalized economies in other areas of the world are booming. They offer cheaper labor and because of transportation goods can be shipped all over the world.
As economies develop and change we need to look at the factors that influence this. Weather, resources, location and labor prices are a few examples of this. Another influence is government policies. There are three types of economies: command, market and mixed. In a market economy. In a command economy the government controls the economy. It decides what will be produces, wages and prices. Socialism and Communism are examples of a command economy. In a market economy the economy is controlled by individuals. In a pure market economy the government is absent from the economy. A mixed economy has element from both a command and market economy. The economic decisions are made by the people but the government plays a role in the resources. Most developed countries today have a mixed economy.
In his book, The Black Swan: The Impact of the Highly Improbabl...
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...(which they do not control)” (Taleb). People should become more involved with the financial process. A person should save their money for the future instead of relying on investments to pay off. When investing they should choose things that are low risk and not take a large gamble.
“Make an omelet with the broken eggs” is the final principal. We need to start over and fix our system. It is time we stopped try to protect failing industries and let the natural process continue. We need to figure out new policies and ways to fix the economy. The old way we did things is not working anymore. By fixing it now we can make a better system for future generations.
of Nassim Taleb’s The Black Swan: The Impact of the Highly Improbable
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