Thoughts about economics 2.

 

Economics is a very influential science in people's lives.  The poor or middle class is the main concern of economists.  Given the weak monthly salary of the poor or middle class and the rise in prices of goods and services.  This increases the inflation rate.  But the poor and middle classes have innovations in which they try to overcome the high rate of inflation.

 Poor and middle class individuals may have monthly savings, but it is very little.  But the number of poor and middle class people increases.  It represents a significant number of what they save.  The higher the savings rate in any society, this indicates the strength of the economy in that society.  The savings of poor and middle class individuals are collected through banks.  This money is returned to investment in the form of loans granted to investors and businessmen to establish new projects and thus generate new job opportunities.  Or for one of the factories or companies operating in the community to request a loan to increase the number of production lines or branches for the factory or company.  Thus, job opportunities increase and the number of workers and employees within the factory increases.  Therefore, the circulation of capital within any society occurs in a circular, automatic, and rapid manner.  Increasing job opportunities or increasing monthly salaries.  It increases the number of consumers and increases their monthly spending.  Consequently, the profits of factories and companies increase and the collection of government taxes paid by companies and factories increases.

 But wars and disasters appear that destroy any economic system.  The decision to go to war destroys the economy of the country that started the war.  It also destroys the economy of the country that is defending itself against the decision to go to war and the start of military operations against it.  The neighbors of the two countries that are fighting each other have their economies greatly affected.  Therefore, there is a mechanism or method using international institutions such as the United Nations.  By preventing or stopping war quickly and intervening between countries to stop the fire.  And the start of peace negotiations.  It is important for the inhabitants of this planet in which we live.

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