What is economy, and what is the purpose of economy? I just learnt from the previous economic units that I took-up, that economy is a sort of management. Etymologically, from the Greek terminology, oikos and nomos, which laterally means, “house rules or house management.” What is being ruled, and what is being managed? Obviously, it is no other than, goods that are necessary for human existence. Why do they have to be managed? It is because of their scarcity – the underlying element of economic functions. According to Roberto G. Medina, Ph.D., scarcity is “when most things that people want are available only in limited supply. Thus, there is a great necessity calling for the appliance of the house management.
An apple has to be quartered equally to three craving toddlers. Luckily, there are goods that don’t have to be mathematically or demographically stipulated in order to be available for consumption. The air we breathe that is being given freely and copiously by nature fits this picture; all we have to do is to literally ‘economize’ our negligence and irresponsible disposal of waste elements. God must have been so generous to us uncaring individuals that he made this so abundant we don’t even notice its encompassing value more than any economic goods, or we don’t sleep late at night uneasy of what air to breathe tomorrow and the coming days. Besides, human values are elements that defy economic calculus.
Economic goods, no matter how scares, are given the utmost thought for further proliferation. There are basic economic resources that underscore economic operations, the land, labor, capital, plus the prolific synthesizing capability of an entrepreneur.
Thus, in the bivouac of economy in a political society, every economic action are channeled to economic growth, full employment, economic efficiency, price level stability, economic freedom, equitable distribution of income, economic security and balance of trade (Roberto G. Medina, Principle of Economics,) How do we measure now economic growth and development? Is it when everybody’s well fed, every employee or worker receives considerable salary; every one’s owning a car or nestling on a well furnished houses? Perhaps, it is? How does economic develop? Obviously, economy develops if it allows more output of goods for consumption. Some say if a society is highly industrialized with a high standard of living or in view, it is highly urbanized. Sadly, it fosters few side-effects such as, increased noise, congestion and pollution, towns and cities may become overcrowded, and traditional way of living maybe lost, people may experience increased anxiety and stress, and few others. Therefore economic development doesn’t always guarantee the populace a happy and auspicious living.
I dubbed this paper as multidimensional because economics doesn’t only show the monetary, the GNP or the GDP and agility of a country to show off material productivity, but also of the integral dimensions or dispositions of every individual. Economic condition may cause crimes, calamities and other derogating phenomena. A highly industrialized city might be the cause of the land slide in a certain locality. If the economic revenue is not equally distributed, then deficiency to a certain area to a certain individuals will happen (a statement highly tantamount to saying corruption). With considerable economic growth comes considerable demand and consumption of every individual. This would eventually change individual’s quality of life – considering that few determinants of economy are man’s unlimited wants, and his maximum satisfaction.
We can elucidate thousands and thousands of economic norms for economic growth and development, but after all, each and every one of us has always the last say about our ‘economy’ from within and from without.
Material economy alone cannot satisfy the unlimited wants of each and every one of us. There is no maximum satisfaction after all. Economic development resides and emanates from each one of us. Economic downfall does not only begin when an official corrupts the revenues, but when a single centavo is being used in vain. It doesn’t begin when a tycoon or president went on to an expensive trip or party spree, but when an individual doesn’t make good enough of the left over in his table.