Week 7 Lecture 4

Economics – The dismal science: The Age on Uncertainty.

Economics can be explained as knowledge of understanding production, consumption and transfer of wealth. Economics has been replaces by modern economics by aiming only to get money. In order to do that modern economics is all about the desire to consume, giving customers what they want. So producers are throwing goods and services to consumers as ‘the more you see the more you want’. That could be seen as a way of thinking for the producer for them to create more products that would interest society. Basically economics is to satisfy the costumers, how a product can be developed and sold to make money. As product being the utility of economics it plays a big part as it’s important for it to be what consumers want. This falls down to forgetting their needs and it’s all about what they want and are willing to pay for it. Utilitism is a modern action to maximise the overall happiness, by whatever means necessary. Looking deeper into economics and how it works according to Ricardo’s Theory of Value, prices of a product do not correspond to its value. For a product such as piano would cost about 5000 this will include the labour and work done on in. For a piano to be developed as a product would not cost as much to build as it is sold. In a society for a product to be successful it will mean to have made a big profit which falls down to how many people bought the product. Malthus Iron Law of Population was pessimistic as he stated it would be a loss of population to have one kid, stabled population to have 2 kids and high population to have 2+. Malthus believed in one massive population in order to work Capitalism depends on profit. So the bigger the population the more profit will be made.