Economics
What is economy?
Flow of money/resources/capital in a society
Types
global or local
private or governmental
macro or micro
balance between consumers and producers
Marx theories
Profit and loss
Wealth distribution in the world
describes the market situation
deciding what to do with what you have
efficiency
trade
From powerpoint...
developing models to describe reality
LEDS, EDS, MEDC
a system for the production and exchange of goods and services to satisfy the wants and needs of the population
services
consultants, über, cleaning staff
goods
buying actual physical stuff, like clothes
People
Adam Smith
"Every individual is continually exerting himself to find out the most advantageous employment for whatever capital he can command. It is his own advantage, indeed, and not that of the society, which he has in view. But the study of his own advantage naturally, or rather necessarily, leads him to prefer that employment which is most advantageous to the society." -p 12
Marx and Engels
The bourgeoisie has created more colossal productive forces than have all preceding generations
Social labour
John Maynard Keynes
"We have evolved ourselves in a colossal muddle, having blundered in the control of a delicate machine, the workings of which we do not understand" -p. 94, year 1930
Virtual economy
Ernst Friedrich Schumacher
"An industrial system which uses forty percent of the worlds resources to supply less than six percent of the worlds population could be called efficient only if it obtained strikingly successful results in terms of human happiness, well-being, culture, peace, and harmony. I do not need to dwell on the fact that the american system fails to do this, or that there are not the slightest prospects that it could do so if only it achieved a higher rate of growth of population." p 162
Small is beautiful
criticizing that the 1% had all the power and money, saying that they had a negative impact on society and making it harder for people to follow what their the best at
Alan Greenspan
"We were wrong wquite a good deal of the time"
Michael Goodwin
"We're citizens of a democracy. Most of the issues we vote on come down to economics. It's our responsibility to understand what we're voting about."
Economic actors
Government
Household
Credit institutions
Companies
4.8 million in Sweden, 12 million in California, 11 million in Canada
people live together and share their income
greater concentration in cities
Multinationals can have "economies" that are greater than many countries, for example Afghanistan
Good for the government since they provide jobs #
Usually listed companies with shares bought by people and institutions
Capitalism
Capitalist
Someone who can live off their investments in companies or stocks, and doesn't have to work
Protocapitlism was first with tulips since they were valued so highly
In 2012 the majority of the shares (69%) were owned by Facebook associates, such as employees and founders
Small and medium-sized enterprises SME are the most common, can be a few or even one person up to 100-255: the self-employed, small firms, start-ups
Cooperatives are independent associations of individuals
Factors of production
Natural resources
Raw materials or our beautiful Earth
Wheat
Rocks
Coal
Human resources
Work force
Important to see the bigger picture, since we aren't just working force, we're are also citizens with rights and above all we are human
Physical
Workplace, equipment
Technical
Know how, education and training
Management
Organizational skills
Taxes
Public companies are those who are listed (börsnoterade)
Private companies are those who are privately owned
Wood
Oil
Computers or tools
Manufactured resources
Capital goods
Fixed capital
Machinery, buildings, etc...
Computers, phones, cars, radio
Working capital
Materials used up in production
Investment
Seed money
Venture capital
Banking
The money invested in a company in the beginning
Called seed money because it will grow (hopefully)
The Entrepreneur
Often unites all factors of production
Steve Jobs
Visionary, innovator
"Stay hungry. Stay foolish."
Public sector
Deals with the production, delivery and allocation of goods and services by and for the government
Targets the national and domestic government
Public sector
Targets the national and domestic government
Creates policy which covers education, infrastructure of all kinds, social services and so on
Deals with the production, delivery and allocation of goods and services by and for the government
Financed and funded by taxes
Changes according to a socialist, communist, liberal-democratic or fascist forms of government
how would the government ideology affect the education?
work with the idea of money (a medium, a measure, a store and a standard)
Money can be "stored" to ensure that it retains its value, e.g. in US dollars
Markets for money
Savers and borrowers
Security and credit
Treasurer bills
Mortgages
Commercial paper
Promises of return within a few days or months
low risk, low reward
high risk, high reward
Types of banks
National banks (b2b - business to business)
Merchant and investment banks
commercial banks (b2c)
International banks (b2b)
The International Monetary Fund
click to edit
"Return money"
The money expected back when investing in a company
A law was passed that means that households have to amortize 20 per cent of their mortgage each year
Need to help households that go bankrupt
There's a difference between bailing out and helping out
In-class documentary
Investment banks