Per Bylund's "How to Think About the Economy: A Primer" opens with a chapter that gives a general overview of what economics is and why it is significant. Bylund emphasizes that economics is concerned with how people distribute resources to meet their limitless wants and needs and defines it as the study of human behavior in the setting of scarcity. He points out that although people frequently think of economics as a science, it is actually more appropriately classified as a social science because it examines how people behave and make decisions. Bylund asserts that having a solid grasp of economics is necessary for us to allocate our own resources wisely when he makes the claim > (Bylund 2016) Economics, then, is the study of human action under conditions of scarcity. It is about how people allocate scarce resources to satisfy their unlimited wants.(p 6)" By using our time, money, and other resources wisely, we maximize our own satisfaction by studying economics and learning how to do things better. At the end of the day, we are all exchanging some form of value with one another. Whether I am conversing with someone or paying someone for a product, I am giving them something of value – my attention/time and money, which I acquired through time and effort. Businesses, for instance, employ economic concepts to choose which items to create, how much to charge for them, and how best to spend their resources. We as humans do the exact same in our day to day lives, which makes it crucial to study economics and the market to further progress ourselves. Bylund also emphasizes how economics can help guide choices about taxation, regulation, and public spending. He emphasizes the need of taking into account the economic repercussions of various policy alternatives because these choices can have a significant impact on the economy and on people's lives. According to Bylund, solid economic analysis can assist decision-makers in taking better decisions that support economic growth, lessen poverty, and improve general well-being. Although studying economics might be difficult and complex, Bylund thinks it is ultimately satisfying and useful for understanding how the world works. He makes the point that studying economics entails more than just comprehending theoretical ideas or mathematical models; it also entails studying how people behave and interact in the actual world. Bylund draws the conclusion that a greater grasp of economics can aid us in making better decisions in our personal and professional life as well as informing judgments about public policy that have an impact on all of us.
Per Bylund talks about economic theory and how crucial it is for comprehending the economy in Chapter 2. According to Bylund, economic theory is a framework that aids in the understanding and analysis of economic phenomena and offers a number of resources for generating predictions and conducting experiments. Bylund contends that economic theory is crucial for comprehending the economy because it enables us to make sense of the intricate relationships between people, organizations, and governments. Byland claims “> (Bylund 2016) Economics is the science of human action. It is the branch of knowledge that studies human behavior as a relationship between ends and scarce means which have alternative uses(16)." He points out that some presumptions about human nature serve as the foundation for economic theory, such as the notion that people act rationally in order to maximize their own happiness. Although Bylund admits that these presumptions are not always accurate, he says that they offer a useful framework for analyzing economic phenomena. It seems that the nuance to this claim is that only educated individuals act rationally to maximize their own happiness. Those who are uneducated and have less intellect continue to stay on their current path, despite the various signals of unhappiness along the way. From an evolutionary standpoint, those who are unable to think rationally and pursue better outcomes are unfit and therefore will struggle through life – only the fit can move on. Bylund also talks about how crucial models are to economic theory. He points out that economic models can be used to generate predictions and test hypotheses because they are condensed representations of the real world. Bylund underlines that economic models must be judged on their capacity to describe things that actually occur in the real world because they are not flawless. According to Bylund, there are numerous schools of economic thought, each with their own set of underlying presumptions and models. He speaks about a few of the main schools of economic theory, such as classical, neoclassical, and Austrian schools. Bylund contends that although these schools of thought have different underlying theories and models, they still aim to comprehend and explain economic occurrences. Bylund emphasizes the value of economic theory in helping us comprehend the world around us.. He points out that both private and public policy decisions can be influenced by economic theory. Bylund also emphasizes that economic theory is a dynamic field that continually adapts to new information and circumstances. He contends that having a better grasp of economic theory will enable us to make wiser choices and enhance our general well-being.
In Chapter 4 of "How to Think About the Economy: A Primer," author Per Bylund explains the nature of the economy as a process rather than a factory. According to Bylund, the economy is an ever-evolving process in which people and organizations are continuously looking for new ways to add value and meet their requirements. Also, Bylund claims the factory metaphor is a constrained and unreliable way to think about the economy. It sees the economy as a collection of machinery and workers generating things and services. He contends that a dynamic and complicated process in which people and businesses are continuously experimenting with new concepts and manufacturing techniques is a better way to understand the economy. Bylund points out that entrepreneurs, who are continually looking for new chances to create value and meet consumer expectations, are what fuel this process of experimentation and innovation. He assesses that business owners are essential to the economy because they are most likely to discover novel and creative methods of generating goods and services. He also claims “>(Bylund 2016) Entrepreneurship is about finding opportunities to improve and make profits. It is a process of discovering what customers need and want, and then finding ways to provide that at a price that they are willing to pay(p 41).” In this quote, he talks about how competition affects the economy. He says that competition helps to guarantee that resources are put to their most productive uses and acts as a tool for testing and improving new concepts and production techniques. This is especially prevalent in the stock market. Everyone is always looking for a way to game the system, which further progresses the system as time goes on. When there is less competition, there is more room for arbitrage, but, as the individual exploits a certain thing eventually someone else will catch on. ONce someone else catches on, then more people see it and eventually the space gets more and more competitive. This can be seen with derivatives, as market makers used to provide large spreads on contracts and would happily gobble up the large difference. As more market makers catch on, the spreads become thinner and thinner, which only benefits the player on the other end, as they receive a more fair price. This example is something that I have witnessed in my experience and is a perfect way to summarize competitive markets in a gist. Additionally, Bylund says that since competition spurs business people to constantly enhance their goods and services, competition is not a harmful force but rather a constructive one, which further backs my point made above.. According to Bylund, the economy is not a static entity but rather undergoes continuous change as new theories and techniques for production are developed and implemented. He contends that this process of "creative destruction," in which outdated and ineffective manufacturing techniques are replaced by fresh, effective ones, is a major factor in economic development. Bylund emphasizes in the chapter's conclusion how critical it is to view the economy as a process rather than a factory. He boldly claims that taking this viewpoint can make it easier for us to comprehend how dynamic and intricate the economy is, as well as how important entrepreneurs and competition are for fostering innovation and growth.
I really enjoyed reading your thoughts on Bylund's writings. You very clearly demonstrated a deep understanding of what Bylund was trying to get across.
This summation of what Bylund was trying to get across is said quite nicely. This is something that I did not pick up on when I was first reading the material for myself, but this is so well said and easy to understand. I learned a lot about what economics really is in the process of reading everything necessary for this assignment. One of the big take aways that I personally had that I can see you related with also was how fluid the economy is. Within defining the word "economy", we find that it is not a specific set of processes, statistics, or numbers, but it is a fluid process of progression and regression over a long period of time. I think that in the world of business, especially as someone pursues an education within business, people can get very caught up in specific definitions of certain things and it becomes very easy to compartmentalize. I think something I learned from Bylund is that, the economy is not to be compartmentalized or really even defines. It just exists and ebbs and flows naturally.
Your essay is extremely well written and I think it is written and organized very efficiently and professionally. One thing I would encourage you to work on in conciseness and formatting. Formatting via Hive is challenging, and I struggled with it a lot at the beginning. Some bolded headings would go a long way, and I think splitting your thoughts into separate paragraphs would also help with the look of the essay. Lastly, block quotes are one of the formatting features that makes the biggest difference when writing such a lengthy essay. It makes your direct references stand out, making them easier to read and more identifiable. The details on how to properly use all of these features are outlines in Dr. Trost's video on canvas.
Over all, you did a great job covering the material conceptually, and I think you demonstrated a very clear understanding of the material by Bylund. Great work!
This was a very well written essay on the reflection of Bylund's writing and your views on the matter. With no headings it was tough to find the main points and be able to preface what the essay was about, however, it was a very extensive which made it easy to understand your thoughts on the subject.
I agree with your essay saying that it is important to understand the fundamentals of economics and how crucial the people apart of it are.
I believe it is helpful information to know whether you are apart of the marketplace ot just viewing or interacting from the outside. Showing the correlation between happiness and knowledge was very interesting and can show how eye-opening economics and the market can be. I also agree with the view that while it is an extremely complex system, it is important that economics is able to flow and mesh with society and not to be too restricting to its individuals involved. Reading this essay and Bylund's work has taught me a lot about what economics is and how its intricate system works. I never realized how important competition was within economics, always thought it was one versus the other but the competition aspect actually helps grow the market and in some ways can be beneficial to both parties involved. It proves that every part of the economy can grow and function with each other to create a nice flow. The details in your essay helped to get a better understanding of economics.
Your essay is very well written and shows that you have a deep understanding of the material by Bylund. I would suggest adding some headers to highlight the main points of the essay as stated earlier. Block quotes also help the text stand out which can be very beneficial, especially in longer essays. and help show what parts of Bylund's writing stood out to you and that you are sharing your opinion about. I did not understand formatting on Hive at all at the beginning but the video really helped. Overall fantastic essay, formatting could just help take it to the next level!
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