Gravity and Tipping Point in Economics Essay

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Gravity

I selected the major of economics due to its absolute importance in the modern world. Every imaginable aspect of society revolves around economics. The gravity of its importance to the function of the world cannot be disregarded. Every single day on the news, you can hear events, debates, and worries which are related to the condition of the economic system. I believe that this influence which economics has in the world and its critical role in the development and evolution of society made me gravitate towards studying it as a science.

Economics has existed in its primitive forms since the existence of known history. For centuries, it developed and had become more complicated to match the complexity of global financial systems and trade. A common misconception exists that economics is a discipline that is based solely on financial transactions and does not produce tangible benefits. However, science is a combination of many other disciplines including sociology, mathematics, and statistics. They are combined to form a mechanism that can be used to predict human behavior, manage markets, and improve the world for the better. Economics may not be a physical science or skill, but it can have very tangible benefits or consequences based on how it is utilized by decision-makers in various sectors of society.

As a social science, economics is strongly based on human choice. Many decisions, from individual to societal, have economic implications. Based on the principle of scarcity and opportunity cost, there is almost always a matter of choice that is made based on the available information. Science helps me understand personal decisions as well as significant economic issues which society aims to resolve.

Tipping Point

For me personally, a tipping point that sparked my passion for economics was the 2008 financial crisis. At the time, I was already interested in the subject, but this event made me realize the importance of economics as a science and its competent application in political and business circles. As various sectors of banking, industry, and social programs began to decline rapidly and there was evident panic from practically all areas of society, I realized how far-reaching the effects of economics are regarding the modern way of life.

The most incredible thing about the 2008 financial crisis was its predictability. As we later learned, all the organizations and agents involved were aware of the instability that subprime mortgages had. Various experts voiced their concerns far in advance of the crash. However, driven by profit, the majority of financial institutions chose to ignore the warning signs. Meanwhile, a lot of regular working-class families did not have the financial literacy or information to realize that they were being dragged into unstable investments which would result in a loss of homes and savings. It made me understand the aspect of responsibility that corporations and economists had before the population to guide the national economy in a way that avoids harming their livelihood.

Analyzing these implications several years later, after acquiring significant knowledge on the subject, I can see specific patterns within the national economy. Unfortunately, in the process of recovery, there were few significant changes made to prevent such events from reoccurring. I am dedicating myself to the study of economics in hopes of being a voice of reason in my community and workplace to make competent economic decisions, backed by social responsibility.

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IvyPanda. (2021, May 13). Gravity and Tipping Point in Economics. https://ivypanda.com/essays/gravity-and-tipping-point-in-economics/

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"Gravity and Tipping Point in Economics." IvyPanda, 13 May 2021, ivypanda.com/essays/gravity-and-tipping-point-in-economics/.

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IvyPanda. (2021) 'Gravity and Tipping Point in Economics'. 13 May.

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IvyPanda. 2021. "Gravity and Tipping Point in Economics." May 13, 2021. https://ivypanda.com/essays/gravity-and-tipping-point-in-economics/.

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IvyPanda. "Gravity and Tipping Point in Economics." May 13, 2021. https://ivypanda.com/essays/gravity-and-tipping-point-in-economics/.

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