Submitted by AutoModerator t3_10l0kx9 in askscience
MrOrangeMagic t1_j5vd9ys wrote
Reply to comment by mschweini in Ask Anything Wednesday - Economics, Political Science, Linguistics, Anthropology by AutoModerator
Because I can’t explain “the economy” in an Reddit post entirely I will do my best in a small example/explanation.
You can see this economy as this kind of circle with some smaller circles around it. We have all decided that we will live with a system that gives us a digital or physical piece of paper to pay with. The economy revolves around the value, sustainability and usefulness of that product (money). That is the main circle.
You could see that part of the start of the main circle is raw materials, like for example that of farmers, miners and loggers. Then we need some people to transform the raw material into something. Factory workers, builders who build a house or Cooks. Then we need people to buy the iPhone, buy or invest in the building and go out to eat. The thing is that everyone in that circle pretty much needs something from not only their own profession:( Money and Maybe a house) but also from the other professions, like an iPhone or food, this does of course include the farmer who grew the ingredients for the food or the miner who dug up the gold for the iPhone. So to put it simpel it is a circle build around the needs and demands, but also the money we have chosen to exchange products with
Does that answer it a bit ?
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