My Future as an Economist

In our my life, economy in the country is not a big thing for me. Before I took the economy class, the only things I know about economy are stocks and banks. After few weeks of the economy class, supply, demand, equilibrium, GDP, central bank, federal government, fiscal policy; I can still go on if you want me to. I think that these materials and concepts I learnt from class will be really useful for me because in the future I am going to deal with financial problem myself but not my parents. So far I think economy is pretty interesting, but in the future, I don't think I am going to study any further about economy. For me, taking this class is not the purpose of learning new stuff for my academic, but the purpose of learning new stuff for my future life.

Topic 13: Supply or Demand?

Both demand side policy and supply side policy are based on the basics of demand and supply. if it is demand side policy, for example, the interest rate decrease, then the demand of the economy will increase because people will have more money to spend or to invest it. As the definition of demand side policy, it means that "aim to change the aggregate demand in existing economy", and the supply side policy means " aim to change the aggregate supply in existing economy". Although these two are different policies, they are all meant to be about increasing the productivity in our workforce, which is basically mean to lower the barriers for people to produce goods and services. Reducing taxes is one of the way to increase the productivity in workforce. The purpose of the action is to increase the flexibility in our production. I think demand side policy is a better type of policy for me compare to supply side policy. The advantages of the demand side policy including being able to stimulate the economy and increase the aggregate demand, and also being able to control the inflation. The disadvantages of the demand side policy including budget deficits with increased debts and policy legs which reduced spending in a healthy economy and more spending during a weak economy.  

Topic 12: Role of the Government

Everyone wants to get rich. Economic boom is the thing they want it happen in their countries. But they always forgot an important thing, business cycle. There are four stages of the cycle and the stage everyones want the economic in their country at stage two: Peak. As the peak go really high, the third stage will come. Stock price starts falling, the boom becomes ashes, everything is gone. I think government should take a little bit of control of economic so they can cool down the economic in their country to stop another economic tragedy in their country. There's a real historic economic tragedy happened n 1929 of America. It's called the Great Depression. The Great Depression happened because the stock buyers were guessing when would the stock price is going up. However, those predictions were wrong ad the stock market crashed, everyone was broke in a minute. During that time, the government believed in a theory call lassiez fair, it means "hands off" policy: the government shouldn't involve the businesses so those businesses will be good. After the Great Depression happened, the government still didn't have any action to help because the government still believed "hands off" policy. The unemployment rate grew to 25%, that means there are 1 out of 4 people doesn't have a job. After FDR became president, he directly help the society and the society got better. As we can see through the history, I think the government should involve and sometimes cool down the business with raising taxes so this kind of tragedy won't happen again.

Topic 11: Unemployment

There are so many jobs in this world, but how come there are still unemployed people? I believe that some people will say that the unemployment increase is because those unemployed people don't have skills to work or those unemployed people think the salary is too low so that they don't want that job. Well the second reason is the pretty reasonable because many young men that graduated from college think they are the best and could get better salary then other people that graduate from normal college. Back to our topic; there are some jobs are less resistant for example, I think farmer, fisherman, are kinds of less resistant jobs because they are seasonable work, and also there are many factors that will make these jobs really hard. So I think they are less resistant job. Long resistant jobs I think it's like office man works in office under a boss. This kind of job is long resistance is because it won't stopped until you retire or quit the job. For me, I think I'm going to major in computer science. In the future, I think I will be the worker that sit in front of the computer all day long writing program and make this world better. So I think my job would be a long resistance work.