Macro and Micro Economics
Macro and microeconomic work hand in hand towards the entire economic growth of a nation. The only difference is that microeconomic involves the individual entrepreneur actions in the economy, whereas the macroeconomics focuses on the entire economy issues such as inflation or unemployment. Precisely, the status of macroeconomic influences decisions of small scale businesses, while the achievement of macroeconomic relies ultimately on the actions of individual enterprises. Therefore, governments should put in place measures to manage entrepreneurs since their work plays a crucial role in economic growth. Besides, every person has a role to play in the community.
Conditions that can Lender an Entrepreneurship Productive or Destructive
Entrepreneurship is the key to every nations’ economic growth. However, their thirst for wealth, power and prestige can as well ruin the economy. According to McCaffrey (2018), entrepreneurship is not immanently economically healthy and thus can fall in the productive or distractive category. Entrepreneurship is more productive in a nation that experiences political stability and stable tradeoffs. For example, in most developed country entrepreneurs plough back profit, thereby by expanding their businesses to maximize profit which is also an advantage to the nation’s economy.
On the contrary, an economy encounters destructive entrepreneurship when the nation is politically unstable, which in most cases facilitates conflicts and violence (McCaffrey, 2018). Additionally, complicated procedures to enter in the business field can as well lead entrepreneurship to be more destructive. For example, during the election period, many entrepreneurs close down their business in fear of uncertainties. Nonetheless, when an entrepreneur decides to expand the company, it does not only generate more profit to the owner but also creates employment opportunity, which is the productive part of the entire economy. However, the same decision can be destructive if the macroeconomic does not support business operation, which propels such a business person to engage in illegal activities such as unreasonable pay cut to his/her workers.
Every action you take is a Vote on how society should function.
Society consists of people with different preferences, which challenges it to involve everyone’s views for proper functioning. People’s powers are highly recognized in every nation, especially in developed countries where the rule of law is observed. That gives an individual right to contribute to towards their preferred results. In an economic perspective, the power of demand and supply lies with personal choices as well as income level. For example, when the price of a particular commodity goes high, and the ordinary citizen shift their demands, the cost of that commodity falls. As claimed by Sen (2018), it is every person actions that determines how other people within the society will react. In the political arena, which plays a significant role in shaping the community and the economy of a nation, every person an opportunity to vote in leaders who they believe will bring change in the society. On that note, if every person takes responsibility to hold their leaders accountable, definitely the nation will move on the prefered direction. Concurrently, for a community to achieve security, every person has a personal responsibility to ensure his actions does not trigger any violence, be their neighbour’s keeper and report any criminal activity he/she encounters. Furthermore, society is made up of people, hence reflects the characters of people who live within, which therefore means every person action is what shapes the nation and its function.
Reference
McCaffrey, M. (2018). William Baumol’s “Entrepreneurship: Productive, Unproductive, and
Destructive”. In Foundational research in entrepreneurship studies (pp. 179-201). Palgrave
Macmillan, Cham.
Sen, A. (2018). Collective choice and social welfare. Harvard University Press.