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RE: The Market and Economy

in #market2 years ago

"...entrepreneurs has a heavy influence on the economy and society."

I absolutely agree with this statement. Entrepreneurs create jobs and employ people which leads to the growth of the economy. The creation of new jobs reduces the unemployment rate as well. On top of this, they can create wealth which can then be reinvested into other businesses and/or stocks. It is also common for them to donate to charities and other philanthropic events and organizations. Community development can also be a by-product of these efforts. Each of these things benefit our economy and society as a whole.

Bylund stated that

The economy is about creating value. (Bylund, 2022, p. 15-16)

This statement can be interpreted many ways. Value can be created in many ways but specifically the benefits that goods and services provide people creates an abundance of value. Value is not just created by entrepreneurs and businesses: the government and nonprofit organizations can create value as well. Governments can improve transportation and communication networks. This makes it easier for businesses to operate and makes goods and services more accessible. Nonprofit organizations can provide support development and social services that benefit communities as well.

I agree with your statement that an item can be very valuable to one person and not to another. The other thing that must be considered by entrepreneurs is that their product or service might just simply be a trend. It may be popular one day and not the next. They also have to be very competitive. Another company could create a product that is either cheaper or works better. They will have to figure out if they can make their product for a lower cost or if they can improve how their product works.

"...we would not have an economy if individuals did not act upon their wants and needs."
I agree with this, the economy works only because of our society. This applies to the market as well. The market would not exist without the exchange of goods. For example, as you referenced, Bylund explains that a candy company does not make every ingredient that they use to create their candy. They must rely on other companies to be able to produce their good. Our economy and society works because we all rely on each other to be able to produce or purchase goods and services.

I agree with many points that you made throughout this essay.