Economy Essays

808 Words 4 Pages
Believe it or not, but, your everyday life is effected by the economy. I’m sure each person goes to the mall, and to the shoe store. Well, let’s say you just heard about these awesome sneakers, and almost everyone you know wants a pair. You go into the shoe store to find them, and they are all sold out! You have just been affected by the SUPPLY of a product. The more people want something, they higher the price will be. Then, you figure you will wait for a while, until the price of those sneakers goes down, but, they are THE most popular sneakers ever made. Guess what, the next time you go to the store, the price has actually gone up! Because EVERYONE seems to want a pair of these things. The company now figures that the sneakers will be …show more content…
“Needs” and “Wants” are completely different terms. People HAVE to buy the things that they need, but do not necessarily HAVE to buy the things that they want. Things like clothing, food and housing are things that we need, but, we can live without such things as the latest sneakers, or video games. Each persons’ needs and wants are somewhat determined by their own personal economic situation. If a person is independently wealthy, they can buy whatever they wish, but most people have to deal with a certain amount of money. They cannot spend whatever they wish.
Our country right now is at an all time high for spending, despite some of the happenings on September 11th. This is not necessarily a good thing. You have heard the old saying, “a penny saved is a penny earned”, well that is exactly what people are now saving. One penny is now being saved for every $10 worth of income. Our country has one of the lowest savings rates of any industrialized country in the world. When we retire, we will have to live on things like social security. As you may have heard from all the election promises, the candidates are telling everyone they will help the elderly people with their medicine costs. These people probably did not have the chance to save. Savings is an important thing in our country. It is also carefully watched by the Federal Reserve Bank. Alan Greenspan, is the head or chairman of the Federal

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