5th year economy - The economy as a social science
THE ECONOMY AS A SOCIAL SCIENCE
The human person, as a social being, is and should be the principle, the subject and the purpose of all institutions.
The man is a social being and, therefore, of the activities that he realizes motivated by the principle of scarcity, social relations arise. By studying these activities and their social consequences, the Economy becomes a "Social Science" .-
We must also bear in mind that, in all economic activity, the role of the STATE is fundamental; since the State must play an important role in taking care that economic activities are carried out regularly, with clear rules.
Functions of the modern State:
• Provide a legal framework, with permanent rules that change only when the dynamics of the system so requires, in order to guide permanent economic development.
• Provide social security (housing, health, education, subsidize unemployment, etc.)
• Assume the defense of the weakest sectors.
Before the Globalization of the economy, competition has arisen, where there is room for those who achieve a better efficiency in production, lowering costs, among which are the salary, these costs are reduced in two ways: replacing the workforce by robots, or decreasing the salary and social charges, thus increasing income imbalances.
Then, there will only be economic development when it is accompanied by a just distribution of income. It is here where the governmental authorities must play a very important role: they CAN NOT LEAVE ALL IN THE HANDS OF THE PARTICULARS, since the most powerful will always dominate the weakest.
"THE ECONOMY MUST BE SUBORDINATED TO MORALITY". The family is the basic cell on which society is built.
5th year economy-The economy as a social science
• POSITIVE ECONOMY: It is that branch of the economy that describes or explains human relationships motivated by the principle of scarcity.
• REGULATORY ECONOMY: Is one that studies human activities motivated by the principle of scarcity, pointing out principles and criteria to improve the quality of life of people.
• MICROECONOMY: analyzes the formation of prices, production costs, wage fixing, business problems, consumer behavior, etc.-
• MACROECONOMY: its purpose is the study of the regional, national, and international economy, that is, the dynamics of the set of economic activities.
• MARKET ECONOMY: Following the neoliberal economic ideas, according to which the market forces alone tend to balance, this economic model is favorable to the deregulation of economic activities, meaning that the State should intervene as little as possible in its development.-
• DIRECTED ECONOMICS: This system contributed to the super development of the Soviet state, it is also true that the economic and social upheavals that caused, led to the fall of a regime that lasted just over 60 years, without during its course could be seen as a valid option to replace the Capitalist system.-
• MIXED ECONOMY: It is a market economy regulated by the state where it retains the power to defend the weakest sectors and avoids the abuses of lack of competition, whether due to problems of monopoly or disagreement between large companies, it is perhaps the most viable system to prosecute the economy using the benefits of the Market Economy as a determinant of: "what, how, and why", and avoiding the abuse of the most powerful with better legislation.
DIVISIONS OF THE ECONOMY
- What is your general classification and other classifications?
- I will elaborate a synthesis of each one of the previous classifications.-
- The Economy with which other sciences is related.-
DEVELOPMENT - It is related to different branches of the economy, which are:
a) Political economy or economic theory
b) Economic Policy
c) Public Finance
d) Economic History
e) History of Economic Doctrines
Divisions of the Economy:
a) According to the nature of your study.
b) According to the phenomena covered.
c) According to the amplitude of the study.
d) According to the moment that it refers.
e) Other classifications. - Pure Political Economy or Economic Theory: Try to determine the laws that govern economic problems.
Economic Policy: try to apply the knowledge of the Political Economy to a specific state in order to obtain the most optimal economic results.
Public Finances: Studies the inherent use of national income and resources by governments.
Economic History: Provides the background of the evolution of the institutions and economic processes of the different peoples.
History of the economic doctrines: groups the different thoughts in diverse towns and epochs.
Divisions of the Economy:
a) According to the nature of your study:
• Pure Political Economy: Study the spontaneous relationships that are created between men in society, proposing to explain them without going to judge them.
• Social economy: Studies the voluntary relationships of men with each other, in order to improve their well-being, in this case the achievement of the best means to achieve said objective is proposed.-
b) According to the phenomena covered:
• Production: dedicated to the study of the creation of goods.-
• Circulation: It covers everything related to the transfer and exchange of goods from the source of production to consumption.-
• Distribution: Study the way in which the goods produced should be distributed based on the income of those who participate in the economic process.
• Consumption or final use of the goods produced, through consumption itself, savings and investment
c) According to the scope of study:
• Microeconomics: Dedicated to the study of the different production and consumption units individually (micro = small, oikonomio = economy) .-
• Macroeconomics: It refers to the study of the set of economic units taken in mass and analyzes the relationships they cause in the national and international economy (macro = large); oikonomia.-
d) According to the moment referred to:
• Static Economics: refers to the study of certain situations at a fixed time.
• Economic dynamics: It deals with the study of the variation of the elements that make up the economic process appropriate to social reality.
e) Other classifications:
• Descriptive economy: This refers to the factors related to a specific economic problem; for ex. The European Industrial System, the Automotive Industry in France, etc.-
• Economic Theory or Economic Analysis: Its purpose is to explain the functioning of an economic system and its main aspects.
• Applied Economics: Starting from the analysis provided by economic theory, explains the causes and meaning of the facts that are presented in the descriptive economy. The classification of the Economy that they call traffic (which means the circulation of goods and services) has also reached certain prominence among the modern Economists of the German School in:
a) Economy of closed traffic: to refer to all the aspects that are presented within the economic unit.-
b) Open traffic economy: that studies what is inherent in the relationships between the different economic units.
ECONOMIC SCIENCE AND ITS RELATIONSHIP WITH OTHER SCIENCES
Other sciences related to economics are:
• Technology: The incorporation of this, influences economic development.
• Ethnography: through it the description and classification of races of men is studied.-
• Demography: This one studies the human biological facts, that also influence the economic phenomena.-
• Ethics: This deals with the moral and obligations of men.-
• Political Science: This is the foundation science.-
OTHER BRANCHES OF THE ECONOMY
• The International Economy: This is a particular case of the market economy, which studies the economic relations between the country and the rest of the world.-
• Labor Economy: It deals with the problems that belong to the labor market.-
• Economic development: It is a generic description to describe the progress and the structural change of the economy.-
• Industrial Economics: Study the economic problems of the Secondary Sector.-
• Monetary Economy: deals with the financial system, the creation of the money, and its effects on the economic system.
