We Are All Economists, Here’s Why

Economics is the fabric of our daily lives and subconsciously dictates the decisions we make every single day, whether it be as a consumer or as a producer.

In short — economics is everything.

On a Macro-Level

Macro-economics: The general health of the economy is studied, such as measuring the output of a nation, otherwise known as the Gross Domestic Product (GDP). This is an important economic indicator quickly illustrating which part of the economic cycle we are in, which in turn is linked to unemployment rates. This branch of economics also focuses on inflation rates, which is important because that correlates to interest rates — something that affects everyone from savings to car loans, student loans to home purchases. Both monetary and fiscal policy is covered in macroeconomics as well.

Global Financial Crisis

This was at the forefront of the 2008–09 global financial crisis where the monetary policy was the Federal Reserve deciding to lower interest rates to stimulate consumer spending again (which accounts for 70% of GDP). If consumers do not spend, the economy halts.

The fiscal policy was the government creating a stimulus spending package that would pump money in to the economy, to have the cycle flowing again between…