Common Sense Economics Paper

709 WordsFeb 23, 20133 Pages
Common Sense Economics Paper With the recent developments in the economy there could have not been a better time to pick up this book and read it. I work for a financial institution which had received a good amount of TARP funds. This was followed by media on the company’s allocation of resources for what appears to be a recreational purchase equaling almost the amount of TARP funding. In turn to find out company “x” had decided that employees will not be receiving a compensation increase this year. After just the first couple of pages I already knew I wanted to dive in to the first part of the book discussing the “Ten Key Elements of Economics.” This immediately shifted my interest to the first two key elements…show more content…
This also makes me consider key element number seven “People Earn Income by Helping Others.” Nonetheless what happens to the incentive of providing others with valuable goods and services now? With the lack of understanding the shift in incentive I feel the employees will only care about their personal desires. Their interest to improve can result in lower productivity standards, or the search for a new employer. Considering the company standpoint inefficient workers will find other more personally beneficial opportunities. Cited as one of the reasons for reduced productivity of labor. The employees will provide less valuable service as the company profit will continue to decline. By changing the ways of how the company operates and the rate of compensation it forces employees to focus even more on their self-interest. Now when presented with work, they will find the most efficient way of service. This in turn goes along with economic progress; along with the correct amount of government intervention as discussed in the later part of the book. This can potentially create areas for new employment opportunities, and advancement of the nation as a whole. Any company can bring their numbers back into the black with the correct allocation of the resources and capital. But also with new innovative ways to provide services and goods. With the responsible people in the right
Open Document