Also this is not a news story but ever since Ap Econ started I have been noticing more and more how everything is related to Economics. Me and Domino were at work a few days ago talking about how one of our friends had quit his job. Then all of a sudden we both started talking about his opportunity cost. Economics is a cool subject because unlike Math, you can see how it applies to your life now. We dont have to wait to see how Economics will help us in the future. We can see how it is working now. I really like that about Economics. Economics underlies every thing that happens everyday. When i go to Shopko to buy something like yellow eyeliner i can never find it. Why? because who wants yellow eyeliner. Just from guessing i could probably assume that yellow is not a big seller. If no one buy yellow eyeliner why would they sell it. Economics is the basis of our society. Nothing happens with out Economics lying in the foundation. I think it is cool to learn about something that affects our lives so intently and we can observe immeadiatly.
-erica ackatz-
3 comments:
That is so interesting - to make small loans like that! And to someone in the US, that was probably a super-minimal loan - I would guess even in the hundreds of dollars rather than thousands - that will change the landscape of that family.
'Course, there are always externalities to that... ;)
One of the things I love about econ is that it applies to everything. It changes how you view just about anything in life. Those "click" moments where you just see how it all falls together...well, I'm glad econ is required here, and not just for job security. :)
Great job!
Cool article-but I have one question. I was wondering how Yunus used his knowledge of Economics to make sure that those under the poverty line who used the loans, invested it in a productive manner. As Mrs. McDaniel said it must have been a "super-minimal" amount, though still, how was Mr. Yunus able to be sure (using economics) that the loans were not used for personal-non productive uses?
Hmmm...interesting point, Raveen.
My gut feeling on that would be the way the money was distributed probably had some caveats to it in regards to what could be done. Also, we're so used to how people in the US view money - he may have purposely chosen people that would use the money for investment purposes rather than personal gain.
That could easily be considered an externality in this case, though - what control do you have in a situation like that?
(not much)
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