Explain the fact that definition of economics varies overtime?
- Posted:
- 3+ months ago by ucworldwide
- Topics:
- fact, definition, economics, economic
Answers (3)
We don't explain, we just answer questions. I don't agree that it is a function of time. I don't agree that the definition changes enough to talk about. I would say that some people don't know what they are talking about, and politicians are in the business of obfuscating things, and that pretty much covers the topic. But those are my opinions, not hard facts.
The definition of economics never changes. The basics that make up economics changes: Production raises or lowers or ceases. Consumption may increase while production lowers or vice versa. Wealth is never static.
ec·o·nom·ics
1. the branch of knowledge concerned with the production, consumption, and transfer of wealth.
2.the condition of a region or group as regards material prosperity.
"he is responsible for the island's modest economics"
Economics comes from the Greek word oikonomia which means a household. The English word means management, as in the class "home economics". Since management always involves pinching pennies, the word comes to mean frugality and money, but still specifically the management thereof.
Did you buy something today? Let's suppose you bought a pencil. What color? What brand? Did you look for a certain kind or just grab one from the bin nearest the checkout line? All such decisions in an area make up the economy of that area, counted in the local currency for convenience. People who don't know what they are talking about assume that the money is "the economy". That is how you get fools enacting programs such as "Cash For Clunkers" a few years ago. The government actually gave people money to crush their cars and buy new ones, supposedly to "stimulate the economy." They were amazed to find that most of that money went to foreign auto makers. It never occurred to the legislators that very few American auto makers are still in business. Then people noticed that prices of used car parts skyrocketed because the supply had gone to almost zero because all those used cars got crushed. Duh!
There is no problem with definitions changing, the problem is that lawmakers don't know what they are talking about.
BTW this story is an example of "broken window fallacy". Here is knowledge:
fee.org/search?q=broken+window+fallacy