Tutor profile: Melissa F.
The field of Economics is commonly used to predict the spending habits of consumers and the growth of a country's wealth and resources in the future. How do you think a pandemic affects an economy?
Economics currently does not contain large data points about how pandemics could affect an economy. However, one could hypothesize several trends about job markets, consumer confidence, and spending patterns of businesses. Assuming large portions of industries must down to avoid spread of disease, we could predict a large increase in unemployment . Assuming more citizens are out of work, we would also expect to see a decrease in consumer purchases. Pair this with an identical decrease in business spending as more businesses shut down, and you can expect a negative effect on the economy. Finally, government spending via unemployment payments and business relief programs would increase. We currently find the United States of America's economy in a similar situation. As unprecedented as this is, I would expect a change in the field of economics. It will contain data about the effects of pandemics in the near future.
Finance is a complex field of study. How do we as students categorize and organize this large field?
Finance, similar to it sister field of study, Economics, is broken down by scale. At its smallest level, Personal Finance is how the individual spends and saves their income. At its largest, we find global finance and how countries interact to further their own economies. In between the individual and the country is business. Corporate Finance is the study of how businesses decide to save and spend their money.
How has America's economy been shaped by early ideals surrounding commerce?
The American economy reflects the ideals of our early founders. As early settlors set apart from England, they dreamed of an economy that reflected individual freedom. These ideals translated well into capitalism and the importance of the individual consumer. Important industries like banking and medicine are set up with a spirit of non-governmental control, in hopes of maximizing profits.
needs and Melissa will reply soon.