#ecoknowmics

[ecoknowmics]

Ludwig Wittgenstein, Tractatus Logico-Philisophicus (1922)

[ecoknowmics]

In Fear the Boom and Bust, John Maynard Keynes and F. A. Hayek, two of the great economists of the 20th century, come back to life to attend an economics conference on the economic crisis. Before the conference begins, and at the insistence of Lord Keynes, they go out for a night on the town and sing about why there's a "boom and bust" cycle in modern economies and good reason to fear it. (via Fear the Boom and Bust)

[ecoknowmics]

I have always been a fan of Gloc 9's music. His boldness in writing songs about the country's poverty, migration and dirty politics never go unnoticed to me. I can confidently say that he is one of the few remaining Filipino music artists that uses their talent to positively influence their listeners.

Just recently, GMA News and Public Affairs released an "anthem" entitled Dapat Tama which is composed and performed by Gloc 9 together with Denise Barbacena that aims to remind the public that they should not be blinded by smooth talks, money and popularity when voting in the coming May elections.

I am hoping that every Filipino voter will find time to listen to this song and internalize its meaning since choosing a candidate is not child's play rather is a serious matter that has a significant impact on Philippines' success or failure.

[ecoknowmics]

I was mentally kicking myself when my professor showed this video in class the other day. How the hell did I miss something this GREAT?!

The video above is the Department of Tourism's official tourism advertisement for the Philippines. In just 2 minutes and 42 seconds, it managed to capture the essence of being a Filipino and tell the world why IT IS MORE FUN IN THE PHILIPPINES.

I love every second of the video - the catchy music, witty descriptions, cheery videography, even the parts that show tourists having fun.

I applaud the Department of Tourism for their effort in attracting tourists here in the Philippines. Aside from the fact that tourism generates more jobs for locals and contributes to the country's gross national income, it is also a source of Filipino pride knowing that the world admires your country not only because of its breathtaking places but also because of the warmth and hospitality of the people.

PS: This is actually an "advertisement series". To watch the other tourism advertisements created by the Department of Tourism, visit their Youtube Channel.

Be proud to be a Filipino because IT'S MORE FUN IN THE PHILIPPINES.

[ecoknowmics]

[ecoknowmics]

Microeconomics vs Macroeconomics

It has been established in my previous post that economics is all about the allocation of scarce resources in order to satisfy the wants and needs of human. And as I have said before, economics can be broken down into two broad categories which are Macroeconomics and Microeconomics.

In a nut shell, microeconomics is the study of individual consumers and producers in specific markets. It looks in the smaller picture and tackles more about the decision making of the households and the firms which in turn affects the supply and demand of goods as well as the amount of outputs produced and their prices.

Below are the common topics discussed under microeconomics:

1. supply and demand

2. consumer behavior

3. pricing of output

4. production process

5. cost structure

6. distribution

On the other hand, macroeconomics deals with the behavior of the economy as a whole. This time we are looking at the aggregate economy or economy as whole (which is composed of hundreds or even thousand of individual markets).

Topics usually discussed under macroeconomics:

1. gross domestic product and gross national product

2. national income accounting

3. inflation

4. unemployment

5. fiscal policy

6. monetary policy

It is worth mentioning that though microeconomics and macroeconomics are two different areas of economics, what happens in one influences the other. For example, a sudden surge in the price of oil might trigger inflation in the country or the implementation of contractionary monetary policy may decrease the price of commodities to encourage demand.

[ecoknowmics]

What is Economics?

Writings about economics has been dated way back the early civilization of Greece, around 300 B.C. The first recognized literature tackling matters related to economics is Xenophon's Oeconomicus which literally means management of the household and contains Socratc dialogues about agriculture, rural versus urban life, slavery, religion and education.

Over the years, the scope and definition of economics has evolved from 'management of the household' to a more complex and more technical form. Below is the most complete and most popular definition of economics:

Economics is a social science that studies and seeks to allocate scarce human and non human resources among their alternative uses in order to satisfy man's unlimited needs and wants.

It is a social science because aside from it is concerned with society and human behavior, it also follows the scientific way of thinking (identify the problem, observe, construct hypotheses, experiment, conclude). No, economists does not draw graphs and tables then make hasty judgments or conclusions. Everything has to undergo the scientific method.

Basically, the essence of economics is the allocation of scarce human and non human resources. Whether involving a business or the whole country, it is the economist's job to 'distribute' the resources available in order to attain its goals and minimize cost. To determine the right allocation of resources, these questions should be asked: what to produce? how much to produce? how to produce? and for whom to produce?

How can economists minimize costs? That is where the alternative uses of resources comes in. Take for instance the shift from the use of coal to electricity of most public trains.

And lastly, economic principles support the fact that humans are hard to satisfy due to its unlimited needs and wants. This is the reason why allocation of resources is the core of economics.

By the way, needs and wants are two different things; needs are those essential for man's survival while wants are those not essential for one's survival yet is important in increasing one's quality of life.

From the definition given above, we can break down the study of economics into two broad categories: Macroeconomics and Microeconomics, which I will briefly discuss on my next blog post.

[ecoknowmics]

A Reminder for this Coming Elections

Philippine local and senate elections are just around the corner. Candidates have begun pouring thousands of pesos to TV and radio stations, even making use of the Internet through social networking sites, to overwhelm us with their most of the time empty promises.

I often hear Filipinos who scream at the top of their lungs for a change in the system. They complain non-stop but they do nothing. They blame everyone, especially those who are in high political positions, but they never put the blame to themselves. I know, I am guilty of that as well. However, this coming May is the perfect time to change this passive attitude and for once use our power as citizens of the Philippines to make a substantial change for our country. Let us start voting wisely.

To guide us in choosing the right candidate, here is a list of what we should look for in a public leader:

1. Honesty and Transparency

  Corruption has always been existent in any government not just the Philippines. However, a widely done unethical act does not make it ethical. It is embarrassing to note that Philippines remains one of the top most corrupt countries in the world.  Taxes are collected in order to fund government projects, pay salaries of public employees and pay national debt. We want our taxes to be used in a productive manner, not to be used by anyone for his or her own personal matters.

We want, no, we NEED a leader who is not blinded by money. A leader who will not abuse his  power and will dedicate every second of his life serving the public honestly.

2. Environmental Advocate

  A political candidate should be well aware that resources of the country are scarce - may it be human or non-human resources. He knows the importance of these resources thus, he is in the front line of saving Mother Earth especially in the midst of global warming and climate change. He should be the role model of the people, he should instill discipline and should genuinely take part of cleaning the environment, not just for show.

3. Shall go beyond the surname

  How many actors turned politician do we have these days that have failed us and made himself a laughing stock among his colleagues? How many political dynasties have came and gone together with their empty promises?

Fame, instead of competency, has been the basis of people's choice of candidates especially to those who are not well informed and can be easily swayed with sugar coated words that carry no conviction.This has to stop.

We should learn how to separate the truth from rubbish talks. We should go beyond each politician's name and fame and see if they can actually deliver.

4. Shall know his economics

  Politics and economics are two inseparable disciplines thus the term Political Economy was coined. Political economy studies the consumption and production side of the government as well as the distribution of national income and wealth.

A good candidate would "(1) have a clear and viable programs for addressing the critical condition of public finance particularly on taxation, revenue, deficits, and debts and (2) would be prepared to present programs on how to provide social services such as education, food, health care and housing that lead to long-lasting development."

Conclusion

Access to information has been made easier because of the Internet. Relevant data and information such as news clippings about each political candidates has been gathered around the Internet for us voters to scrutinize their motives: if they are true public servers or just acting a role whenever media is around.

The power of democracy lies in its people. If all of us would take voting seriously, only then can we expect the societal changes we want to become possible.