The economy is a field that concerns all individuals in the world, whether you run a country, run a factory, or run your home. It is the expectation of all of us to have a strong economy and not be affected by the negative winds blowing. The pandemic process we are going through has caused us to lose more people around the world, just because the economy is considered as a priority and managed accordingly. In fact, this has proved to us how powerful a factor and priority the economy is. It was caught even before human life and the spinning wheels were somehow made to work.

Unfortunately, it is a sad fact that the economy has different dimensions and functions, especially in times of crisis, making the rich richer and the poor poorer.

With my own thoughts, I will work on the economy in my article by looking at some examples and some different windows. I want you to know that what I write only binds me and is my own opinion.

Company, Firm, Factory or Workshop Owner's Perspective

Let's think like the owner of a company, holding, factory or small workshop. In order to keep the example narrow, I will continue my article through the workshop.

We have a shoe workshop and I employ 10 workers in my workshop. Each worker produces 10 shoes a day for me. So 10 workers produce 100 shoes in total. I'm selling these 100 shoes for $50 each. My daily turnover is 5000 dollars.

The next day, I fired 1 worker and I have 9 workers left. Again, each worker produces 10 shoes a day and in the evening I have 90 shoes. I bought the shoes that I had sold for $50 the day before, for $60. By selling 90 shoes for $60 each, I reach a turnover of $5400.

As the owner of the workshop, we get a great result, right? We are happy because instead of 10 workers we will be paying 9 workers and yet our daily turnover has increased from 5000 dollars to 5400 dollars, so we earned more. Our expenses decreased, our income increased.

Now let's continue to look at the same event with another eye.

State Perspective

Yes, we will now process the above example from the eyes of the state. Consider that these shoes are sold abroad. While we provide a return of 5000 dollars a day to our country, we now provide a return of 5400 dollars. From that perspective, it's a good thing. Because the amount of money entering the country has increased.

Let's change the perspective a little bit.

While 10 workers were working in the workshop, the number decreased to 9. In other words, 1 worker was unemployed. Oops! Unemployment started in the country.

Production decreased from 100 shoes per day to 90 shoes. Oops! Production decreased.

The price of 1 shoe increased from $ 50 to $ 60. Oops! Inflation started in the country.

As I examined in this example, the boss is satisfied. Expenses decreased and income increased. Unemployment, lack of production and inflation in the country are not in his area of interest. As long as he can sell the product he produces and increase his income, there is no problem for him.

The problem is for the unemployed person. The problem is for those who suffer from a lack of employment due to a lack of production. The problem is for the person who will feel the inflation the most. So the problem is for the poor, the lowest stratum of every country.

It is easier to rule a country than to rule a house. Come on! You can say. Think about it, when the economy gives a deficit in the country's governments, you can increase taxes, print money, add additional taxes, borrow long-term debt, sell public goods under the name of privatization.

But what about managing your home's economy? Whatever you earn, you have to deal with it. You have no choice. You cannot do any of the things you do in government administration at home.

Let's think again. Is it really difficult to manage the economy as it is always said? Is it easy?