Trust and Money Essay

Submitted By 311293
Words: 685
Pages: 3

Before looking over the reading materials, economics seemed like an area focused a lot on government money and spendings. They had to decide on how much to spend on each thing and what was most important. For example just now in our country a lot of money goes on health and education as at this point in time they see this as important. Other spendings are on pensions, defence, transport, law and order and many more. It fluxuates all the time and is different in all countries and we can see this. The governments money is funded by us, through tax and VAT. Money is what's used as exchange and the value changes all the time due to political and social changes. Nowadays banks are used in a much more complex way, involving leading money they don't necessarily have. However expenses may rise and changes may occur, resulting in problems with the banking system which then gets the government involved to help as they are the ones who create money and resolve the issues.
After reading the materials I realised there is much more to economics than meets the eye. It's very broad and complex and so many areas and issues can be debated. I realised economics fits into our social world everyday. We make these changes as a population that then affect government and changes are made. It is very much based on trust. For example when you take out a loan you are trusting the banks to provide you with this, and the banks are trusting you to be able to pay it back. This isn't always the case however so government steps in. After reading the 'Ha-Joon Chang from the 23 things they don't tell you about capitalism' I realised a whole lot more was based on trust. Most people work, not only to earn money and support their families, but also for the passion, pride and self respect they get from their job in a well run business with managers that know how to motivate their staff. They have to trust their staff and encourage them in the right ways. Constantly checking up on them or suspecting them of things and treating them like machines will not achieve a good business. This was discovered by the Human Relation School that came out in the 1930's after it was realised that making workers work as fast as they could would increase their productivity made them passive and not think or co-operate. Another example on trust came from the point made about getting taxi's. You could easily jump out a taxi in a busy city and not pay but in society that's wrong and few people do it. The trust is from both sides, the customer trusts the taxi driver to take them to the