Great response! I completely agree that for citizens to understand our ever-changing economy, they must first understand the principles of economics. However, while yes, our economic system is regulated through, “through a complex series of laws and agencies at the federal, state, and local levels”, Bylund argues in his piece,
The aim of economics is to understand how an economy, in all its shapes and forms, works: the nature and workings of the overall process of people making their own decisions, acting, and interacting as they see fit. (Bylund, 2002, p.19)
The economy may operate through laws and agencies. However, it is built by the decisions and exchanges made by citizens every day. The people of society are constantly purchasing different products and services which directly influence a company's financials. Any given company may have the market lead at a specific moment, but if the mass of their consumers changes to purchasing another brand, then that competitor will ultimately gain the market lead. To avoid or gain this edge in the market, companies are constantly offering promotions, discounts, and other purchasing tools to maintain their target audience. This perpetual market exchange between consumers and business directly correlates to the ongoing change in the economy at a rapid pace.
I love your inclusion of COVID-19, as an example that illustrates the power consumers have over the economy. During the pandemic, many companies went out of business due to their consumers no longer treasuring their product or service. Because of dire living conditions, customers deemed many of their normal purchases were no longer as valuable as essential goods. As a result, businesses were forced to alter or change their entire line of work to fit their consumers' new living circumstances. Those who were not sufficient at making these adaptations were not able to survive this short recession.
Ultimately, like you stated, understanding the functions and the importance we, as consumers, have in our economy is crucial. Human and business interaction are what dictates all industries and directly impacts the economy. To fully understand these interactions with one another, we must recognize what causes individuals to make their decisions. This is why I tied the concept of economy to psychology in my response. Psychologists study cognitive, emotional, and behavioral methods of individuals in response to their environment, and their surroundings. Those who fully understand what makes consumers behave in a particular fashion, can predict, and influence their future decisions.