Economic comes from the Greek word "Oikonomia."
Oikonomia is the direct translation for the Greek word household management.
Therefore, whoever that can manage their household income and expenses best, is the winner in Economics, through budgeting and forecasting. Budgeting is to study the flow of money in our daily life, income, and expenditure. While, forecasting, is to model the economic activity and predict the most likely course of the business cycle in the aggregates in macroeconomics and to take appropriate action to profit from it accordingly via microeconomics.
In Economics there will also be theories like "Invincible hands" and "multiplier effects."
In Invincible hands theory, a business that is not of relevant, high quality and at a comfortable price for the consumer will be booted out by the consumer that demand things at "higher value and cheaper price" each time they make a purchase. So, a business that is not efficient (Cheaper in cost) or effective (Cost-Effective) will be booted out in no time by the Consumers - this is called the Invincible Hands in Economics.
In Multiplier Effects Economy, Good Government should act as the Social Fabric that regulates and grow the economy. Government should encourage economic activity that has the highest Cost-Effectiveness in the economy like encouraging spending on infrastructure healthcare or education, which would bring in more Economics Activity and Multiplier Effects in the economy, whereby every dollar the government spending will increase the money in circulation on average 10x, as consumers that feel more wealthy, from the economic prosperity, will be more willing to consume more goods, thus, making the economy more robust, prosperous and Cost-Effective in nature for every dollar the government spend.
Moral of the Story: Efficiency, Effectiveness and Affordability will prevail in the end.
Be Bless As Always,
Dr Lion.
Oikonomia is the direct translation for the Greek word household management.
Therefore, whoever that can manage their household income and expenses best, is the winner in Economics, through budgeting and forecasting. Budgeting is to study the flow of money in our daily life, income, and expenditure. While, forecasting, is to model the economic activity and predict the most likely course of the business cycle in the aggregates in macroeconomics and to take appropriate action to profit from it accordingly via microeconomics.
In Economics there will also be theories like "Invincible hands" and "multiplier effects."
In Invincible hands theory, a business that is not of relevant, high quality and at a comfortable price for the consumer will be booted out by the consumer that demand things at "higher value and cheaper price" each time they make a purchase. So, a business that is not efficient (Cheaper in cost) or effective (Cost-Effective) will be booted out in no time by the Consumers - this is called the Invincible Hands in Economics.
In Multiplier Effects Economy, Good Government should act as the Social Fabric that regulates and grow the economy. Government should encourage economic activity that has the highest Cost-Effectiveness in the economy like encouraging spending on infrastructure healthcare or education, which would bring in more Economics Activity and Multiplier Effects in the economy, whereby every dollar the government spending will increase the money in circulation on average 10x, as consumers that feel more wealthy, from the economic prosperity, will be more willing to consume more goods, thus, making the economy more robust, prosperous and Cost-Effective in nature for every dollar the government spend.
Moral of the Story: Efficiency, Effectiveness and Affordability will prevail in the end.
Be Bless As Always,
Dr Lion.
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