Economics
What are economics
Looking at Byland P.L’s what are economics chapter from “How to think about the economy”, we can see that economics is not just a thing but it is ever-changing and growing. Byland even says
“There are “laws” by which the economy works, and they are immutable”(Byland,2022,15).
Based on what we understand of laws they are to be understood and followed, this means that an economy needs the human touch in order to work. This chapter of Byland’s book offers a better understanding of how our relationship with our economy allows us to create value. Byland gives us an explanation of how human wants to lead to us coming up with a form of trade in order for us to try and better attain our wants. To me, this explanation makes a lot of sense because we normally are not given a way to understand what the economy is we only ever hear phrases like “in this economy”, or “that’s just the economy”. But for me, this is the first time I have heard the economy explained in a way that I agree with.
This chapter also goes into what Byland considers the problem with our economy, production. Byland writes that he believes that because of the way humans work there is never a constant demand for any one product. And I have to agree with him because after all everyone's needs are changing and our wants are most definitely changing. A lot of times it seems like people can not make up their minds about what they want. And because of this most producers can not set an exact number of what they should be producing.
Economic Theory
Byland’s chapter “Economic Theory” is all about how economics like other sciences is not just about what we can observe happening, but it is also about the theory that we use to better understand our economy.
“Economic theory allows us to understand how an economy works. It explains the workings of the economy as a whole so that we can understand the meaning, impact, origins, and evolution of economic phenomena.”(Byland,2022,21)
I really like this quote from Byland’s works, because it really shows that we should all be reaching to really understand what economics is. I think he makes a point to discuss the theory of economics because it will allow people to look at theoretical scenarios so that they can better understand how it would act. However, theory can only get you so far, if you are not using theoretical scenarios based on real situations then instead of learning you are simply grasping at straws rather than learning.
Another good analogy used by Byland in order to drive home the point that it is important to learn and study from things and people that are knowledgeable on the things that you are looking into, is when he brings up what bridge you would want to use, one made with steal or one made with steel. Any sane person would choose to cross the bridge of steal because, in every kind of science, steal is stronger than paper, this same principle can be used with economics. You would not want to take advice from someone who has never had any experience with the economy or on a fundamental level believes that the economy is based on something ridiculous such as the number of trees in an area.
Market
A process not a factory
This chapter is all about how our economy is not just about what happens in one factory but is reliant on what happens in the businesses leading up to the final product. The example used in this chapter is about a candy manufacturing plant.
“For example, a producer of candy usually does not produce the sugar, flavoring, or coloring that is in it.”(Byland,2022,42)
This is an excellent example because it does a wonderful job of explaining that in any product we consume, it takes thousands of people to make sure that it is made in completion. If we stick with Byland’s example of candy we have to look at everything that goes into making candy from the ingredient suppliers to the farmers who harvest the ingredients. You also have to take into account the companies who make the machinery, they have to get their parts and materials from other companies. I think this is a very good way to look at how the economy works because it can only work if all the cogs in the machine work together, so to speak.
Conclusion
In conclusion, Byland has done a wonderful job of explaining the inner workings of our economy. All the chapters that I read of Bylands book I just thought he made everything so much more clear in terms of trying to understand how we as people work with one another.
Works cited
How to think about the economy: A Primer paperback - amazon.com. (n.d.). Retrieved February 17, 2023, from https://www.amazon.com/How-Think-about-Economy-Primer/dp/1610167554
After reading my peers' essay, they have a pretty good understanding of the chapters we recently read from professor Bylund's book, "The Seen, The Unseen, and The Unrealized. They started their writing with professor Bylund economics chapter and described how he gave a better understanding of how it works and is also changing. They went in-depth on what professor Bylund had to say and analyzed the reading to their knowledge, along with getting to know the economy on another level.
I found it noteworthy that they understand that the economy will never be the same. Why is that? Simply because everyone's wants and needs are constantly changing and never staying the same. This led to the conversation of how entrepreneurs came into the picture and how they made such a product that would remain relevant or meet the consumer's needs in the future rather than the now. Professor Bylund gave this piece of information that not only opened my eyes but also seemed to grab the attention of others as well.
I couldn't agree more with this statement because there are so many different opinions on the market and how it works. Economics is happening in everyday society, and it allows the very things we have in today's world. Without the economy, there is no medium of exchange or trade worth value. Everyone should look into and find themselves getting familiar with the theory of economics, as it controls a significant part of life.
My peer's example comes from professor Bylund's candy example. Some many steps and obstacles go into making whatever product you are trying to produce. However, this could go for any product out in the market. The market is such a huge thing that it comes with many providers. Think of items such as candy, bread, drinks, etc. those things have all different kinds of ingredients in them. That allows all the individual producers of those certain ingredients to push their product through the market and essentially be a part of the market.
In inclusion, I enjoyed how my peers chose specific examples of professor Bylunds and described them in their understanding. I did the same in my essay and got a better experience from what I thought I already knew. However, you can always take in more by reading and trying to reflect on someone's opinion or ideas about something.
Hello @marshbella. When reading Bylund’s chapter, “What Economics Is,” I had the similar reaction to you about the definition of economics. I never truly understood the meaning of economics when people discuss it until Bylund explained it as human interactions working together through exchanges. We have such a big impact on keeping the economy in motion by what we buy and sell through different means, and showing businesses what we like and do not like so that they know what to pursue and what not to.
When discussing economic theory, I agree that Bylund wants us to understand how the economy works and does so by sharing several examples of what motivates us to do what we do to interact with each other. However, you lost me after the inserted quote from the chapter. I feel like you missed some of the other main points he had discussed in this section, such as human action and values. I think you had a typo when talking about the bridge analogy because in the article he is comparing steel and paper, but I like how you brought it up with the discussion of the importance of economic theory. You would not walk across a bridge made of paper because it is not strong enough to withstand weight, so why would you support a theory that is not backed up with reliable support, or like you said, trust someone who does not support their claims with experience and evidence on the topic? I think that going more in depth with the support on economic theory would have been better for this section because there is so much evidence to why learning about it is important.
For your final section, I really liked the quote you used to describe the processes that go into making the economy the way it is.
This quote perfectly helps visualize and understand that a product is not just easily accessible to everyone but has assistance from many other sources to get it to its final stage. I agree with what you said in this section about how to look at this in relation to economics because there are many parts that must work together to also make the economy work. It also relates back to how the economy is created due to human action. Later in this article, Bylund mentions innovations and the processes that entrepreneurs use to create new products that can lead to “creative destruction.” I wish you had mentioned this in your analysis because I like the explanation of how we shape the economy based on what we create or buy to determine what works and what doesn’t. Overall, I feel like you had some good explanations to support a few of the points Bylund had mentioned in his book. However, you missed one of the main readings, “The How of the Market,” which applies the market to the economy.
I enjoyed getting to hear your understanding of Byland's work. More specifically when you address the laws and economy. It seems apparent that rules and laws are made to be followed. The most intriguing point that I think more people should be talking about is the problem with our economy. Byland believes that the biggest issue is production. This information is relevant to some of the current issues that we have seen in our economy. Covid 19 had a large effect on the supply and demand across the country, and left remarkable damage. A great example of how quickly this can get out of hand is by looking at what happened as word of Covid 19 spread. Within days the stores had been emptied of toilet paper, canned goods, and sanitizing products. Many other random products were also snatched from shelves, leaving them empty. The production and distribution of these products were designed to fill the expectation of consumers' past behavior. While it seemed impossible to consider we may run out of toilet paper, it became a possibility very quickly. When supply and demand becomes unbalanced, it has large effects on the economy. Byland points this out several times throughout his writing, tying in with his chapter on economic theory. I like that you included his comment on economic theory that states: “Economic theory allows us to understand how an economy works. It explains the workings of the economy as a whole so that we can understand the meaning, impact, origins, and evolution of economic phenomena”(Byland,2022,21). I very much agree that people should be curious about what the economy is and how it works. In my opinion, many people in today's culture are very unaware of how the economy works. In the past few years there have been many people asking that the minimum wage be raised. If they understood the economy they would understand that by doing that, it does not help them as much as they think. A higher pay means that employers must have a larger employment cost. Using Starbucks as an example, by raising the wage, they now probably have to compensate by what they charge the customers. The increase in drink price will affect customers' paycheck all the same. Additionally people may start to see an increase in rent prices. All of this ties in with your comments on the market, and what Byland had to say about it. The economy accounts for millions of factors, and producers rely on sources from all over the world. My biggest takeaway from his writing was the importance of knowing about the economy. Understanding why action A affects action B is critical for predicting the market. I agree that Byland's book did a great job explaining the economy and the aspects that affect it. It is important for people to know and understand why a small change in policy or law can have a large change on the economy output and input.
I think you made great points throughout your paper. The portion that said “> QuoteYou would not want to take advice from someone who has never had any experience with the economy or on a fundamental level believes that the economy is based on something ridiculous such as the number of trees in an area.” is something that really resonates with me because we are constantly blasted with tons of opinions from a variety of people in all walks of life, yet many of these people do not have what we want, rather just an opinion on how to get it. It is important to always look deeper into the intentions of the person that is attempting to convince you so we can understand where they are coming from and adjust accordingly. In most cases, they are likely trying to sell to us and do not care about the end result of our lives. You also mentioned “> Quote everyone's needs are changing and our wants are most definitely changing.” which is a good point because throughout human history, our species has constantly moved on to ‘the next thing.’ We never can be truly satisfied and are always looking ahead to what we can do, buy and say next. The premise is the same in the economy, as products constantly must evolve to fit the ever-changing needs of the customers and businesses must adhere to this by changing along with them. It can be difficult to change something that has worked for so long, but it is inevitable at the end of the day. It also is great for our economy, as this constantly provides consistent growth across time and people continue to buy more and entrepreneurs continue to make more. Lastly, you made a good point in regards to how much goes into creating and selling a product. The candy example Bylund uses is a perfect reality check to the complexity of the system, which really makes you sit back and appreciate how much we have. To think about how much goes into bringing 1 jelly bean to your house for you to eat is mindblowing and I think that portion of your essay was a great addition. Overall, your essay had great points and showed clear understanding of the material.
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