Our forth class taught us the definition of economics. Economics is the study of emergence of order and wealth creation and the consequences of the choices made as part of the extended over of human cooperation.
Basically the definition means that with every decision, there is a trickle effect that affects every business in the world. For example: a wrinkle free shirt will give the dry cleaners less money. They will then have less money to spend on groceries. The people at Wegmans will then have less money to spend on a haircut. This vicious cycle continues until someone can't afford the wrinkle free shirt or until someone goes out of business.
For the rest of class we discussed the differences of Macro and Micro economics. Macro is the individual decisions affecting society (dis-equilibrium) while Micro is just the individual decisions and price theory. The president of America has little power over the economy. The economy is run by 311 million people making decisions everyday.
Ronald McDonald doesn't make people fat. The cheap food causes people to eat causing people to become fat. In this same way Obama doesn't make people poor or rich. People make their own decisions and when 311 million people do this, it is too crazy to control.
We then finished class by talking about how intentions don't lead to the expected results: how a law to save birds in North Carolina has actually killed more birds because people just up and kill the annoying woodpecker because they can't legally touch it. Sometimes intentions do lead to the expected results, but I have found that more often than not they don't. The road to Hell is paved with good intentions.
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