![]() ![]() For most of the 20 th century to today, progress is measured solely in terms of gross domestic product (GDP), or the total monetary value of goods and services a nation produces in a year. ![]() Kate Raworth, an economist at the University of Oxford, believes that we all should be thinking of economics as a doughnut in the 21 st century:ġ. How should a 21st century economist think? Many economists thus argue that it is time to update economic concepts and development for the 21 st century. These assumptions have failed to predict and percent the financial crises of the 2000s, and have allowed extreme poverty to grow alongside extreme wealth. In recent years, the field of economics has been criticized for basing theories and models on problematic assumptions. Understanding these various factors can help us see the big picture and make better decisions. These personal decisions are also framed by macroeconomics, such as inflation and interest rates. Since economics is about decision making, thinking like can economist can help us make better decisions when it comes to how we spend our time and money. This means questions like who in the household should clean the bathroom and which job to take are all economic decisions that economists study. Money is often a part of that equation, not the entirety. ![]() What economists really study is how people and societies make decisions. ![]() There’s a misconception that economists study money or how money is used. Before we get to thinking like an economist, let’s talk about what one even is. ![]()
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