Conclusion

Studying economics helps to initiate professionals and students and allows them to assimilate economic reasoning. This way, they can make informed decisions in the future.

Learn economics to become a good manager

Understanding economics makes for a good manager. Indeed, in the context of economic policy, this manifests itself through optimal management of scarce resources. It is important to emphasize that the resources available on the planet are very limited. But humans have always been able to develop know-how. This enables them to find solutions to overcome this scarcity, in particular through technical advancement. Thus, people who have a vocation to manage finances or work with money should have notions of the economy.

What exactly are the benefits of education? This might seem like an obvious or a trivial topic, but in fact, it involves some very deep economic issues. First of all, education increases human capital in the labor force and that raises wages. Workers who can read and write very well are more productive than workers who cannot. Workers who have a Master’s degree are also more productive. Furthermore, these workers may be more innovative and as we all know, innovation is one of the major drivers of economic growth. An educated workforce is also abler to accept and use the innovations generated by others.

Education enables the worker to work with computers. Many of the most important benefits of education are intangible. For instance, education seems to develop a greater sense of mindfulness in school and eventually in the workplace and also as individual citizens. Societies which have greater degrees of trust and greater degrees of cooperativeness can also be less corrupt. So through these indirect channels, a well-educated society may become a less corrupt society. Thus a society are better able to enjoy the fruits of economic growth.

Poverty is the greatest enemy of good health. Health and poverty are greatly related. Why does being poor affects one’s overall health? Being poor forces people to make choices costly to health. It affects:

• Food choices
• Shelter
• Clothing
• Access to water
• Sanitation

So how is health related to the economy? Note that money is a resource that can allow us to buy things that can make us healthy. A healthy life expectancy and GDP/person are very well connected. As GDP grows, health is also slowly growing. So if you are unhealthy and poor, the trend is you’re not going to live long. When the economy is rich, the society can afford to create a healthy community for everyone and thus allows people to live longer and enjoy life to the fullest.

We have what is termed to as Fragile States. These are economies who are over indebted. In other words, they owe a huge amount of money to other countries. Fragile states account to a huge percentage of global health statistics. Maternal death, poverty and under five deaths are common in fragile states. This is a clear symbol of something being wrong in the economy and the health system of a country. This would result to investors not wanting to invest in these countries because they feel that they won’t profit.

Most people have a hard time recalling what they have learned in economics during their undergraduate years. But many may remember how complicated the subject can be. Every country’s economy has a healthy dose of supply and demand. Supply and demand have an interesting and ongoing relationship. Supply is the availability of a particular good and services in any particular time. Demand on the other hand represents a way to measure consumer desire and spending on a particular good and specified price. This is one of the fundamental concept of economics. Prices is the reflection, and the point in which supply and demand intersect is said to be at equilibrium. Consumers create demand and companies’ studies consumer behavior. Supply impacts the country’s productivity potential. A country’s success in the short run will be determined by inflation, interest rates, consumer spending, and business confidence. In the long run however, the success depends on the right mix of people, population, money, investments, business capitals, and knowledge and ideas. Money and knowledge would result to productive workers and productive workers brings about economic growth. A country’s growth is determined by two components:

Population or number of workers. Population will determine how many workers a country may have. Population can be affected by things such as low birth rate, fertility rate, how long people live, how long they work or retire and the aging population. Obviously policy can impact population and population impacts economic growth. However, a large population does not always make some country rich but more of the productivity.

• Productivity or output by worker. This determines how much each worker earns. Potential output is how much a country can produce with its existing labor force. And the rate of growth overtime is potential growth.

Where does the Government earn and spend its money? There are two main sources where the Government earns its money:

• This is the first and beigest source. The Government taxes a lot of things, such as in the Income of individuals (income tax), profits of corporation (corporation tax) sales tax and services, etc.
• Non-Tax Revenue. These are income which the Government makes from its public undertakings. The Government is also a shareholder in some public sectored banks. When these banks make a profit, this can be a source of Government funds.

Where does the Government spend?

• Revenue Expenditure. This is the expenditure that the Government has to incur for its function. Examples of this is paying the salaries of Government employees, the utilities of Government offices, allocation of money to certain offices, etc.
• Capital Expenditure. These leads to the formation of assets in the economy. Examples of this is when the Government spends money on building roads, public schools, hospitals, railways etc.

When the Government spends more, the Government is experiencing a Fiscal deficit. Fiscal deficit is not necessarily a bad thing if taken under control. If the Government is mostly spending money on capital expenditure, the government is still creating assets for the economy. These assets will give return in the long ran. However, if this is not checked and the Government spends way too much money, then things can get problematic. Below are some effects it can bring to the economy.

• High Inflation
• Higher Interest rates
• Higher taxes

Education has a big impact on the Economy. Obtaining a degree is very important in economic growth. This is particularly true in the context in which skills have to be continuously developing. Education should be prioritized. One factor that hinders this is gender gap. This issue is very sensitive and needs immediate attention. Addressing this will nurture more skilled people in different areas which can help in economic growth. We should end gender gap in education as well as occupational segregation in the labor market.   Evidence has shown that women with degrees in Science and Technology who goes in the labor market do not stay on those occupations and make use of their degrees and practice their specialization. The reason is that; the environment is not family friendly. There is still gender discrimination in terms of promotions and ideas.

Negative effects of gender gap:

• Less likely to be in the labour market.
• Less likely to have a job
• More likely to be paid less
• More likely to be in involuntary part-time work.
• Often discriminated in the workplace.

Gender inequality is a worldwide phenomenon that is costing the global economy trillions of dollars. Many countries marginalize and discriminate against women thus facing the issue of aging and shrinking workforce. In poor countries. Addressing gender gap in education and workplace will have a direct and positive impact to the global economy.

COVID 19 has brought the global economy to its knees. This pandemic has been an economic shock to almost all countries in the world. Many people have lost their livelihood and jobs. Lockdowns have brought about changes that has affected the global economy, technology, finance and trade.  Depending on how different Governments will adopt will determine how these county’s economy will recover.

How do we spark economic recovery?

1. Spend first and save later. During the pandemic governments had been borrowing funds to keep their economy alive. At this time of the pandemic interest’s rates are very low so governments take advantage of this.
2. Embrace exchange. This pandemic has brought about enormous changes. One of the biggest change is that people started working in their homes or remotely instead of the office. Many seem to prefer this. This can boost economic growth and decrease inequalities in the workplace. Before the pandemic people find it very expensive to live in areas where they can find good jobs. There is a clear opportunity if people chose to work at home to ease this constraint. Governments should embrace this change rather than not supporting it.
3. Build a Safety Net. Governments stood behind its citizen during the pandemic and replaced household incomes with stimulus by the Government. This were direct cash payments to people. This will help people get back to their feet.

COVID 19 presents an opportunity for reforming the relationship between the government and its citizen.

Almost all economies around the world has been in a hotspot in an uncertain international picture. The was caused mostly because of the effects of the pandemic. Even the world leading economies are battling weak growth and are facing other problems like the growth of high unemployment. Countries like the United States of America will be under a new leadership and it faces the task of sustaining growth while at the same time implementing unprecedented economic restructuring.

Many governments are asking these questions:

• What do they do to meet the challenges of this pandemic?
• What will be their domestic and international priorities?
• How will they fast track the regrowth of its economy?

Inflation according to Economists have an immense effect on a country’s economy. The average citizen would feel it’s effects as they live their daily lives. This is most especially true if they rely on a per diem basis.  When inflation gets out of control it would devalue a nation’s currency. Worst, it can lead into an economic recession.

Like any other social problem such as unemployment, Inflation has its ups and downs. The average person would greatly feel it’s effect. Inflation results to so economic uncertainties.

Here are the impacts that inflation my bring about:

• Income redistribution: Wealth and or income is redistributed among different social status.
• There is a fall in real income.
• Since inflation causes people to protect their real income, there will be an increase in pay claims. Thus a risk of wage inflation may occur.
• This isn’t good for businesses since business. Businesses cannot set up their real costs and prices.