The Basics of Economics

Since businesses are now completely dependent upon the customers, these businesses now have incentive to offer high quality products at the lower prices. It is... ... middle of paper ... ...to short sightedness and greed. I believe, however, that these crashes can be avoided so long as the citizens do not let greed control them. My solution is to have an educated and informed population before allowing the consumers total control of the marketplace. While the CEOs profit of the hardships and shortsightedness of many, we, as a society, must take control.

As Adam Smith has stated in his theory of the invisible hand, everyone is selfish to satisfy themselves and thus, do exactly that. This in return, benefits society as a whole, because consumers aim for more choice and better prices which leads to competition, workers work hard in order to maximize their pay and benefits and society benefits as a whole as there is more variety of goods, lower levels of unemployment, better standards of living and a thirst for more allocatively efficient goods. This is why firms aim to lower cost by investing in better and more efficient machinery, and the lack of government intervention aid this process. Communism has been called the ‘ideal’ in erasing the gap between the rich and the poor. This is usually done by taxing the rich, subsidizing the poor and dividing the goods and services equally.

A competitive economy, such as the capitalist market, gives us free will to manage our money and goods. Competition is a convincing fact so that the capitalist market to be in everyone’s interest, but let’s see if a disadvantage would make the for-profit economy in everybody’s interest! Are there any disadvantages for a capitalist market? Of course there are because no one is perfect so the result of a non-perfect creature would be non-perfect. In c... ... middle of paper ...

Many people in San Jose now find it harder to find a job because not many positions are available. These positions are no longer available because employers are not willing to lose profit. Economist Henry Hazlitt, believes that the government tries to stabilize commodities by trying to help the low income and unskilled workers by adjusting minimum wage laws. Hazlitt states “[t]he government attempts to help [a] large number of workers […], and the more it attempts to raise their wages, the more […] harmful it is […] to exceed any possible good effects” (Hazlitt 2010). This means that the government tries to make a better living for everyone but in the end, it ends up hurting workers who are no longer worth the minimum wage pay.

Furthermore, you have the market entrepreneurs who take little to no government aid and conduct business in an efficient manner. They are calculated risk takers who may take smaller steps towards their goal, but in doing this they learn how to do the work more efficiently, both time and cost wise. We... ... middle of paper ... ...the higher-income people will pay for it at full market price, the government intervenes once again upon the economy. Once one realizes that not all entrepreneurs are robber barons, but can be charitable, ambitious citizens, you will be better able to conclude what your opinion is on entrepreneurship as a whole. Whether you believe in the government jump-starting the economy with subsidies or in the power of the individual to compete in the market for themselves, it should be duly noted that the power of entrepreneurship is vast and full of determination.

The consumers don’t pay close enough attention to where the products are made. Therefore, consumers are spending extra money and are causing outsourcing to thrive. The lack of knowledge Americans have on the subject of consumers affecting outsourcing is leading our country to economic stress but if we begin to recognize the issue, the jobs we could potentially save may be our own. First, we will look at an example of how consumers inadvertently continue to assist companies with outsourcing. The problem consumers do not realize is that by paying for some name brand products, we are allowing outsourcing to take place.

lowering the minimum wage would bring as many problems as solutions. For example our youth would be employed and our unemployment rate would go down, but the people that currently have jobs will be short on money. This is why minimum wage should stay where it’s at because weather you want to increase it or decrease it both will have a negative effect on our economy. However we could steadily lower it by small amounts which would have less of a negative effect it would give our economy a change to adjust to the changes without major

This will weaken the value of the dollar and thus contradicting any benefits that were though to arise from a rise in the minimum wage. In addition, “It’s true that the government can force business owners to pay its minimum wage workers more per hour, but it can’t force these business owners to pay them more per week.” (“The Right Minimum Wage: $0.00.") Employers will cut benefits, training, and work employees harder to get more out of fewer workers to make up for cost and layoffs. Therefore, people that do receive a slight raise in pay because of the minimum wage will be in the same boat before because of higher prices, cut hours, and the addition of duties and reasonability’s that would have otherwise be spread out over multiple employees. As David Henderson, the editor of The Concise Encyclopedia of Economics, put it “And many of those who do benefit from a wage increase will likely find those benefits undone.

This essay will argue that the government should distribute subsidies for some people who are able to work, but cannot find a jobs to reduce economic problems, improve the standard of living of the unemployed, and even reduce crime. Unemployment basically means people who lack of seeking jobs. “The unemployed are people able, available and willing to work at the going wage rate but cannot find a job despite an active search for work” (Riley, 2012). Unemployment occurs when an expansion in demand rates, while the economic growth goes downward and layoff starts increasing because of a depression from the economy (Hardman, 1999). High rates of joblessness are the main obstacle that is damaging the social development as a whole.

Not only does it affect the economy, but also it poses a great threat towards the living standards of the unemployed people itself. This could lead to many receiving less or no income based on whether or not they receive unemployment welfare benefits from the government. Reduction in income, would lead to a less disposable inc... ... middle of paper ... ...roblem for governments. Social costs such as increase in criminal activities, depression, suicide, criminal activities lead to other economic costs such as fall in consumption levels and the country’s economic growth slows down. Also, large- scale migration in certain areas of a country might pose a threat to its inhabitants, though it might prove to be beneficial for firms in the long run as they will be able to hire more efficient and competitive workers.