Hello @noelanichalmers. I really like how you began your essay with the example of the extent to which the market works. I agree that if one seller was running the entire market, then they would have too much control, but I feel like that would lead other sellers to fail in the market because they would not be able to compete. However, I like your perspective on the market of it not just being exchanges of things we already have, but the other aspects involved, such as the law, costs, and customers. Customers determine whether a product is successful or not, which tells entrepreneurs what they need to focus on to be a leader in the market economy. Bylund discusses this with the term “disruptive technology,” which are new products that customers buy that can replace other products. I agree that entrepreneurs take significant risks because their products can be immediately rejected, and therefore, lose their position in the market. I agree that those who pursue their interests can benefit society because they support the products and services they like, which can begin a trend towards those products or services, leading others to follow suit. But like you mentioned, this power to influence others can ultimately also cause harm because everyone should be able to have a say in the market economy.
From “What Economics Is,” I gathered that economics was more than resources and is about our human interactions. I like when you said that humans have unlimited wants and desires that lack the resources to suffice them. I believe this is what ultimately creates the market economy because that is where entrepreneurs come in and create products to satisfy those needs. However, when we do not have those products, we must decide what we have that can solve the problem at hand. In this chapter, Bylund also discusses the importance of opportunity cost of choosing one product costs the value of the better alternative. We must decide which products are more valuable to us, which keeps the market economy moving by our interactions with resources and each other.
When reading Chapter 2: Economic Theory, I liked how Bylund discusses the fundamentals of economic theory as being our actions that drive the economy. I agree with your thoughts that we must fully understand the economy and not just imply what it is. The quote you used in this follows Bylund’s discussion on actions.
After all, if you have a dream that you do not act on, you are not making it happen. It remains but a dream. The dream itself makes no difference in the world; merely wishing does not make it real. So, action is a rather logical starting point for studying social reality. Acting is how we make changes to the world (Bylund, 2022, p. 23).
I really love how this quote can express economics, or life in general. If we want anything in life, we must work for it to make it happen. Things do not just come to us without putting in the effort to make the dream a reality. This works for economics though because when we value a product, we work to obtain that product. Entrepreneurs see a need for a new product and service and must work for it because they see value in it. I agree with your perspective that we must make changes to see a difference in the world.
This last chapter of Bylund’s brought the full view of how the economy works and what it is. There are many processes that go into bringing products that we buy to the shelves. Bylund’s example of using the candy producer perfectly explains that we do not just get candy. The candy is made with ingredients by machines, which then have to be transported to distribution to consumers. Understanding that the economy runs on processes is crucial to know because we all play an important role in keeping the flow going. Reading your analysis, I can tell that you understood Bylund’s chapters, and I really enjoyed reading your perspective on the topics. Before I read the chapters, I did not know what the economy was, so understanding that we create the economy is vital information to know so we can continue to improve it.