The book Naked Economics is the perfect explanation of what economics really is and what it does through a simple written text and NO GRAPHS. It makes us think about the things we do or see in our daily lives and see the connection to economics that we never thought possible. "The most important ideas in economics are intuitive."Have you ever thought about this? When we buy a car we obviously pay for the price of the car and other like gas and maybe annual checkup. However, we are not paying for the consequences or after effects of driving a vehicle, like CO2 emissions. WE ARE NOT PAYING THE FULL OF COST OF DRIVING A CAR |
This book continually keeps me engaged because it makes me think about what I see in my daily life. I just starting reading this, and I definitely know this is going to be full of surprises! Many of us have seen this in the streets or maybe when buying at a store. Usually the big discounts like 50% or 70% off are always the BIGGEST signs when entering a store or at the mall. However, there is ALWAYS a twist and it happens all the time with credit cards, loans, or other financial stuff. More importantly, in credit card advertisement there will ALWAYS be a small print at the bottom of the advertisement. But, these of course, are the ONLY part people are NOT reading and which could cause them some trouble. In the video, they point out that sometimes "the people with the lowest incomes are the ones who waste more money." But, why? People create their own debts by spending more than they can afford. But, are those people the only ones responsible? They say there is currently a rising middle class in Lima and "these are spending money they don't actually have." There are many factors that can trigger people's debts but we are all responsible for managing them. One of the things that stood out to me from today's lesson is that many of the reasons that people keep spending money is because they don't have the right education to know how their money should be managed, which is in a wiser manner.
2 Comments
Corey Topf
3/15/2014 08:56:06 am
Good explanation of supply and demand here! Just be careful with this statement: "The people with the lowest incomes are the ones who waste more money."
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Karen
3/16/2014 02:05:37 pm
Mr. Topf that's a really good point. That was just something I heard in the video but now I totally agree. Some people may be spending more but not beacuse they do it unconsciously rather because they have no other choice...
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AuthorStudent at Colegio Roosevelt in Lima, Peru. Archives
June 2015
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