Throughout macroeconomics 202 I came across many different macroeconomic theories that I found intriguing an interesting on how our economy is running. Especially the climate in the political stigma with a lot of misinformation is important for me to know the actual facts. So, when I’m reading something that it has a substantial base of correct information. Majority of media outlets and other sources that report the news to want the most clicks but not the relative information that is important to the subject, especially when it comes to the economy.
We always see the click-bait titles like “America’s economy is going to get destroyed!!!” over some new tax reform or something. But this class was able to give me an insight of what really is going on and when I see those titles, I don’t have to take it at face value because I now understand what the economists are talking about. With that being said, there are three exclusive economic theories that I can apply to my life maybe not directly but indirectly, those include, economic growth, foreign trade, and economic development.
All three of these have something in common when these are affected negatively or positively it will indirectly affect my life and others as well.
Economic growth is a very important topic to know which is the method on how to assess the process. When economic growth occurs the first thing that affects the GNI per capita which in layman’s terms means it will just give people and me a higher standard of living.
If I’m making more money it helps me purchase more goods and services which in turn helps the economy and stimulates it. This also has another great effect of decreasing unemployment rate because there’s more demand for product and services. Pretty much I’m finally able to find a job much more easily which takes away the headache up feeling out numerous applications.
This leads me to the second point of foreign trade indirectly affecting my quality of life. Because we have leaders in place that do the trade deals for the citizens, we never get a direct taste of what affects foreign trade has. But as I discussed in my first essay the continuous trade war will affect American and Chinese citizens. Not only will the impact the industries such as automotive and dairy in a negative way. This trade war will directly impact consumers that are buying these products. The top 1% will always be fine with these price increases because they’re able to afford it but for people that are low income or middle class, it will be a hit to take. Especially when this product such as dairy which many people rely on being a reasonable price to feed their families.
Lastly, economic development is a macroeconomic theory that applies to all Americans and I. Economic development is similar to economic growth one can’t happen without the other but the difference is economic development focuses on the long term process. But the main difference between these two is economic development is the process of having a better standard of life. This theory helps not only developed nations but underdeveloped ones as well, it focuses on education, mortality rate, and monetary income. All these things greatly affect my life and other people’s lives, for example, education a smarter group of people will always have a better standard of life than a populist that is not educated. So, as more economic development happens it directly impacts my life in a positive manner being that is the development of important things that affect people standard of life.
These three macroeconomic theories, in my opinion, are base of a sound a successful economy that will continue thriving even when hardship hits. All three of these things will directly or indirectly affect 99% of the people. So, it is very important that we not only understand these concepts but were able to apply them to our everyday lives. Just something as simple as keeping up with the news knowing that the price of goods might increase, or unemployment rates are low, you’re able to make life decisions a little more soundly knowing that you’re going to be okay.
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