How We Live Essay

788 words - 4 pages

How We Live Since the birth of the our country, there have been many influences on its development. The economy has been one of the most important. The economy now is even more important than ever. However, there are few that really understand how the economy works and how a person can increase his or her material welfare.The production of goods and services is the base of man's material welfare. The amount and quality of products controls how well man can live. There is a simple formula for man's material welfare. It reads as follows: "Man's material welfare equals his natural resources plus his muscular and mental human energy multiplied by the efficiency of his tools." The only ...view middle of the document...

A person can invest in a business by buying corporation stocks and bonds of the business. If a person does this, the business has more resources to expand in their goods and services; therefor increasing its profit. The more a business increases in its profits, the more the stocks of the business are worth. If a business does not make profits, or goes into too much debt, the stocks will decrease in their value.When a business starts falling down the mountain of value, it will start to lower or even stop its expenditures. It may lower its expenditures by cutting off its employees or by closing its doors. This is the cause of unemployment. There are two causes of unemployment. One, customers may be unwilling to purchase the business's products or services because they are not wanted. Or, the business's products may be too expensive and customers don't have enough resources to purchase the products. By producing products and services or by lowering prices so that customers are able to purchases the products, a business can end unemployment.Many people are mistaken on the fact that managers are the...

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