Anlea Therese J. Hinautan
Each day, we suffice our needs through a myriad of approaches, and in these approaches, economic institutions are associated. Thus, we can say that these institutions are requisite to our daily lives which consequently affected individuals subtly and explicitly.
Economic institutions are those that are involved in the production and distribution of the goods and services that members of a society need. Each day, we engage in these institutions though we may not realize it, it impacts our lives by providing necessities and improving the quality of our lives. Consequently, it helps individuals to attain holistic growth in education, politics, and social aspects which enables individuals to be better members of society through these interlinked institutions. The existence of economic institutions allows other institutions to function as well. Moreover, it provides job opportunities, allowing individuals to earn money to suffice daily needs.
There are two distinct types of economic institutions which affect the facets of our lives, namely, non-market institutions and market institutions. In Non- market institutions, transfer, and redistribution affect the lives of individuals by providing benefits. As such, Pag-ibig, GSIS, Phil health, etc. provide security to our future in times of jarring adversities. Similarly, redistribution provides benefits such as healthcare, free medicines, and other programs that alleviate poverty and ameliorate current societal issues. However, these benefits are taken from people's taxes which are earned through blood and sweat. Moreover, this type may present adverse effects on individuals if corruption takes place. As such, there will be an unequal distribution of money which will cause several effects on individuals and the economy of the country. On the other hand, Market institutions influence our daily lives through the exchange of money for the things that we want to appease our desires and needs. By these institutions, profits accumulate through selling. Thus, allowing people to make a living. Moreover, through this institution, a loan can be made to expand businesses or for personal use. Furthermore, businesses in these institutions may take part in exporting their products outside the country which consequently leads to the economy to flourish and benefits individuals by creating job opportunities, having access to new products and services from other countries, broadening the horizons of individuals regarding businesses, and improving the quality of life.
Facets of our lives are affected by economic institutions, either negatively or positively. However, it is indispensable that these institutions, no matter what type it is, have provided more benefits to individuals as they mold the perceptions we have regarding work, leisure, consumption, and saving practices. Furthermore, economic institutions vastly influence economic growth, investments in physical and human capital, technology, and production. Thus, without economic institutions, there will be nothing other than dissatisfaction and chaos as all of us are dependent on these as they hold the necessities in our lives, and thus, it is crucial to know how it affects us so that it enables us to maneuver our lives effectively by giving importance and support to these institutions to the fullest extent.
economic institutions mold the perceptions of individuals regarding work, leisure, consumption, and saving practices.
Market Institutions facilitates the exchange of money and services
Institutions allow the economy to develop.
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