It’s hard to provide detail insights into the economy without first explaining what the economy is. For more detailed insights about what is happening in the global economy and insights into what that means for you and your business, have a read of my blog posts to find out more.
As for explaining what the economy is, allow me to explain it to you as simply as possible. Sometimes the economy is good, sometimes it’s bad and on the whole a lot of people don’t really know what that means. It can be hard to explain, even if you think you’ve got a basic grip on your perception of the state of the economy.
So, if you want a very general overview, the economy is just about making money and spending money and the effect that has on the population of any given country.
It’s also about who has the money, who doesn’t and who is getting richer and who is getting poorer. The economy is made up of people who are buying and people who are selling, so basically people and businesses.
Most people are both buyers and sellers. We buy things for our lives and we sell our time to our employers.
If the economy is in a good state, most people will have more money than they need and if it is doing badly, people will have too little money to buy what they need.
Real Life Scenarios
Most people struggle to understand the economy because it is an abstract concept and it’s difficult to put into words. If you put it into real-life scenarios, it’s a lot easier to grasp the idea. For example: a bad economy means you can’t spend too much money, you should only buy things that you need, if more people have jobs and are spending more, then the economy is good.
If the economy is bad, the prices of products will rise and you won’t be able to buy as many things. If another country has a bad economy and the people are in a bad situation food and jobs wise, then a country in a better economy may send money and food to help them through it.
Of course, there is even more still to economy, and there are many different levels and models to try and make sense of it and to educate business makers on how to manipulate the economy in their favour.
There will be some blog posts that go through some of these theories and they’re a great read if you want to start educating yourself on these theories and models. If you’re just the average joe, then you shouldn’t need to know all of this, but it could be useful if you’re trying to move up in the world or be a savvier shopper and consumer.
Most of the news you need to know about the economy, you can find on the news or right here on the blog! Keep an eye out for new blog posts that get published regularly!