Dig Into the Economics in the Real World

Dig into the economics in the real world

You might be frequented by a sight where the lecturer draws out a perfectly concise supply-demand model curve for his/her students, just in order to explain to them how the economy operates in the market environment. And many of us, I believe, have been so obsessed with the great simplicity and strong logic of economics that we even intend to devote ourselves to this field of research. However, I would very much like to question those enthusiastic fans, including me; that how many of us have doubted the correctness of what we learnt? What if the so-called economics on the blackboard failed to explain what we see in the real world? And the problem is, we indeed have been caught by such an embarrassing situation.

Honestly speaking, I am not here to challenge the authority of the mainstream economics. What I want to stress is, it would be quite possible if we try exploring economic issues from another perspective, such as our own actual experience? Questions out of curiosity and doubt, of course, are direly needed. For example, you might find something in sharp confrontation with what we used to acknowledge unanimously----the demand problem. Just take a look at what is happening in the National Day: so many crazy consumers get busy with lavishing large sums of money buying fashionable clothing, even the prices of them, according to some insiders of this industry, have gone up by nearly sixty percent in general compared with those of last year, which is so different from the theory on the textbook asserting that demand would definitely drop when price soars. And we truly put much faith in this common knowledge that people prefer cheaper goods at lower price and would reduce consumption if prices are higher. On second thought, you would find that utility of such luxury goods does not come first. In order to win respect and decency, the consumption must be wasteful. In this situation, the demand curve goes upwards.

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