Subject: Economy

Dear My Dearest friends,

If I can still remember it right, I started to fall in love with the subject of Economy shortly after (yes, it's after) I've finished my MBA. After graduating, as most of you probably had experienced, I have loads of free time to do my reading. And the topic of interest for my readings has always been politics and history. And I was amazed to find out that, everything that had happened or will happen, has everything to do with economy! I later find out that economy actually is not just about money and investments or certain curve (huh, boring), but it is about endeavor for the prosperity of human kind. How novel is that!

If I can defined economy, I would define it as the techniques of allocating resources in the most efficient and effective ways. Economy is all about how do you allocate your resources so that your community can grow and live happy ever after. And by resources here, I mean the 4 basic resources a man can possessed: human toil, land, capital, and entrepreneurship.

My blog readers,
Why do certain places/nations prosper and others not so lucky? It is because there trades happening in those prosperous places/nations. People prospers because they can trade those four resources each other. Why do Industrial revolutions occured in west Europe in the 18th century? Industrial revolutions started when people in the English soil started to trade between them as a result of rocketing of population booming during that time. Englishmen has extra human to be used its toil to produce more foods and there are surplus of foods in every harvesting season. So, they are using these surplus foods to trade among them. After awhile, trade started to grow and human started to wanted more goods so they trade with more far away places.

Where do people trade? People trade in a place we called "market". A market is a place where peple trade sell/buy things. A market is an important components in the subject of economy.

So what do we have to do to encourage trades in our places/markets? The objective of any government is to produce a condusive environment for trade to prosper. That is the main objective of any government in this world. Yes, they can makes rules and regulations, but the rules must be created to govern a market so that they market can grow. Government should not get involved or object the needs of a market.

If you all can still remember, one of the four resources in economics is "entrepreneurship". Entrepreneur is a man that take the initiatves to do trade. Entrepreneur is a very important profesion in the study of economy because he create value by trading. Entrepreneur can built a market in its own. In our moder era.entrepreneur is very important to built a strong domestic market.

Nowadays, the subject of economy has evolved into a very sophisticated subject. But the basic prinsiples remain. The most important things is the efficiencies of the market to allocate resources. So, any hinderence should be avoided. Subsidies is very poisonous to this efficiencies mantra. Goverment intervention in contrast with the direction of the market can also distort the efficiency.

Tha is why liberal economic approach is very important. And that is why, integrity is very important. A liberal approach and de-regulations brings the best resources to where its due. This is what we called "market mechanism". Integrity ensures distortion to the efficiencies are eliminated.