Power of an Economy

 Power of an Economy

Economics teaches how to manage resources that are scarce. Economics once was human centric. It will talk more about demand and supply in relation to resources based on needs and wants. Satisfying human needs and wants using available resources to maximize satisfaction and score in profits used to be the key element in economics. 

Current day economics has enlarged its scope of analysis and entered many new areas needing economic inputs. Agricultural economics, Climate economics, Water economics, Health economics, Rare-metal economics, Space economics, Military economics, Social-Political economics, and many more. Looks like scarcity is not scattered but spread over everywhere and in all things. 

Any society needs to keep itself economically active and agile. Digital revolution has put more stress and strain on economics both directly and indirectly. Many fields of business went into fold and many new businesses started to unfold. All looks to be an integral part of economics.

Then what could be the real power, the core power factor, in any economic system. Could it be wealth? Could it be resources? Could it be humans? Could it be technology? Interestingly that which keeps itself dynamic will stand a place at the center of any economic system. Anything that remain static will lose its economic importance over a period in time. 

Two significant parameters simply locked itself in a couple in the current economic framework. One is technology and the other is humans. Both technology and humans are dynamic, and both play a significant role in keeping the cycle of economics functional. Imagine two states of affairs, one where technology compliment humans and the other where technology disturbs humans.

Situation where technology compliment humans result is a positive economic health. The same cannot be true when technology causes distress to humans. Economics see negative trends when technology gives distress to humans. 

A society has its own stratification. The society is fit into three segments based on the economic power of its people. This stratification evolved the poor class, the middle class and the rich class. People are mapped into any of these three-class based on their economic strength, in other words, their purchasing power. 

Many nations with a strong middle-class base proved to be a healthy economic state. More this middle-class is kept protected and functional more will be the goodness in economic functions. Any nation that losses its middle-class or any nation that shrinks its middle-class will enter into economic crisis. 

Middle-class people in a society are the core and real power of economics. Any technological initiatives and developments that causes distress to this middle-class will cause a huge irreparable damage to its economic function. It is for the head of states, for the people in power and for the people in technological initiatives to ensure that this resourceful middle-class should not be put to distress, should not be shrunk, should not be made scarce.