comprehend today's economic crisis, we must understand both the underlying terminology and concepts that make up the foundations of our financial empire. The base elements of the economy are usually purposefully conveyed in a way that is too challenging to understand. It is difficult for us to put the pieces of this complex puzzle together to form the big picture if we do not grasp the basic fundamentals of the economy. Although this brief article will not be able to touch on all aspects of the economy, it will enable you to decipher the code that is written about our momentary systems. The article will also shed some light on the current day issues that are arising as a result of government manipulating this system for their own gain.
The first thing we need to understand is what economy is. The word derives from the Greek language and is loosely translated into “household management.” It is presently used to refer to the social sciences of the areas of production, trade, distribution, as well as goods and services consumption. Economics takes place on an individual, national, and global scale.
the government and is produced on massive scales without any backing of a physical commodity. An example of this is paper bills.
Its “value” is determined loosely by the relationship between supply and demand as opposed to the value of the actual material that makes up currency. The difference between money and currency is that
When the government distributes more fiat currency of which they manufactured without providing any backing, the currency supply goes up forcing prices to rise. Deflation of the economy is the opposite which can be seen as a contraction of the currency supply that causes prices to fall.