According to Mankiw (2014), economics studies ordinary life businesses. The definition is based on a myriad of assumptions that if considered will derive utterly new meaning. As seen in the film directed by Marilyn, policymakers only consider simple activities in integrating economic aspects into mathematical formulas. The approach leaves out essential production activities, especially in the informal economic sectors. A new outlook should be generated to ensure equality in the treatment of individuals’ daily working hours.
The concept of economics as expressed by Marilyn clearly shows that the universal economic system least shows the direct reality of life. According to her, the interests and contributions of women and youth to the economy are vital yet ignored by the system. Policymakers should know the individual needs of a society they are representing. With the knowledge on the people’s daily activities, it would be easy for policymakers to promulgate strategies that best suit different need of different people. This will also simplify the complex economic terms applied to fit individual society needs.
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International rules on labor and working-age rarely fit the universal society. Some societies have their members working to provide for their families as early as 14years of age. Household chores and subsistence production are termed as of no economic value. Had these people spent their hours producing goods for export, the yield would have counted in the national income. This does not eliminate the fact that the produce is consumed by society and contributes to the revitalization of their quality of life. The other factor assumed by economists is the natural habitat and its beauty. Activities involved in paying for wars and other losses such as in case of accidents count in the national computations. This, however, does not take into consideration the loss of lives, destruction of natural habitats, and the degradation of the quality of life of the members of the society around.
The qualitative approach to production activities should be employed rather than the current quantitative methods in order to change individual lives. The enormous costs incurred in compensation for soldiers and expensive arms can be diverted through the provision of quality education and medication to societies. When valuing activities involving extraction of resources from natural habitats such as forests, the opportunity cost like the loss of scenic beauty and life to the occupants need to be well considered.
When doing surveys on economic activities, it is essential that an allowance is created for time use surveys. The endeavor will ensure that not any of the valuable economic activities is left out of the computations. Budgetary allocations will thus cover economic activities more exclusively since direct contributions of each activity will be evident.
The application of the changes suggested by the film will have direct advantages realized by individual members of society. Mankiw (2014) states that people need incentives to act; this is a clear and elaborate incentive to act on our economic policies. Each activity by an individual will be counted, and thus they will receive direct benefits such as the pay as you go services in the developed countries. People will also have the privileged to enjoy safer and more serene natural habitats.
In conclusion, current economic policies view factor contributions in more general terms. The perception that subsistence production least counts to the national income is the most dominant and flawed stance in economic platforms. Specific policies need to be implemented to cater for the education and medical facilities. Direct individual advantages will be realized if aspects counted in the economy are broadened.
References
Mankiw, N. G. (2014). Principles of economics . Cengage Learning.
Marilyn, W (Screen name). (2016, Sep 22). Who’s counting ? Retrieved from https://www.youtube.com/watch?v=WS2nkr9q0VU&t=1863s
