MACRO- MICRO- AND PROJECTED ECONOMICS

More than anything else, the progress of the world in the 21st Century depends on economics. It affects everything and everyone, whether natives in darkest Africa, striving to avoid encroaching urbanization, to the middle aged managers, now out of work in America because of downsizing. While we tend to consider macroeconomics as a worldly overview of resources, Microeconomics is a far more personal aspect of the world economy in general. What we earn, what we spend, what we save, how diligently we work and retain our jobs is all part of the economic system that controls our daily lives.

Because of the wide range of subjects, the following pages are more a generalized overview, with some specific recommendations, based on the "new" economics that the September 11 events have brought about.

First of all, we need to realize that economics and forecasting is now closely tired to the new high-tech age, a.k.a. as The Computer Age, which is not a new Industrial Revolution, but merely an expansion of it. It is not that we do different business, it is that we do business differently. Perhaps this is the key to economic survival, regardless of circumstances. Rather than think of this new high-tech infusion in the world's economic institutions, one should consider this the age of a new type of entrepreneur. As Thorstein Veblen wrote: "The material framework of modern civilization is the industrial system, and the directing force

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spend a few cents more to get what he is used to getting. Another assumption is that consumer preferences are generally in the same consistent order. Milk before bread, bread before eggs, eggs before bacon, bacon before roast beef. Another key assumption is that, if a consumer is used to buying two commodities, he may be willing to accept a little less of Commodity A if he gets more of commodity B. The less A is available, the more he wants B. It is a form of compensation. Economists use these demand figures to create demand curves, which can accurately reflect purchasing patterns. We can even figure out that if there is inflation, how the consumer will continue to purchase what he is used to, perhaps more of one commodity than another. This brings economists into the realm of forecasting. The simplest form (and forecasting is not a science) is known as "nanve forecasting. These techniques have been given that name because they are based on the rather nanve, but frequently useful assumption that tomorrow will be just like today, and next year will be just like this year." (Bowers, p. 5) So, if nanve forecasting turns out to be wrong, it can be said that tomorrow is NOT like today, and this year is NOT
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Some common words found in the essay are:
Thorstein Veblen, Non-SS Retirement, Van Lear, Domestic Product, PROJECTED ECONOMICS, Budget Simulation, Middle Eastern, Federal Reserve, Industrial Revolution, Hill Simon, balanced budget, business enterprise, macro- micro-, september 11, national budget simulation, social security, federal government, human capital, tax expenditures, university california berkeley, assumption consumer, university press,
Approximate Word count = 1897
Approximate Pages = 8 (250 words per page)

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