Crazy Economist #3: Where ceteris paribus is the prerequisite of Economics stability
Continuing my last article in Crazy Economist #2: The Long Term Sustainable shifts of Demand and Supply:
It shares a proposal on how things work in the future; but also promotes the very foundation of each Economics scenarios: ceteris paribus
Ceteris paribus means we assume that all other things are being equal.
We assume our lives are safe, we can go to the market everyday, everyone able to use their phones or watch Youtube in their spare time.
But is it always the same? Surely not. But Economists believe people can change their preferences / habits, but the condition that makes them able to choose what they want is essential for every Economist.
It’s like it doesn’t matter what the Economics charts shape, shifts, slide or glide or even hide; it is based on that condition (ceteris paribus) that the market has that option to select (Demand) and every producer can choose what they produce (Supply).
This is why Grace Consult Group (“GCG”) believe that the solution we proposed on our #2 article above is imperative to ensure the Economics / better livelihood for everyone to have the opportunity to select their preferences given what they have.
Please allow us to explain in example:
Example 1: War
During World War I-II, we found that there are no Supply except for survival products/services: Food, Shelter, Clothes, Medicine, Weaponries, etc.
You get the Supply selections as you imagine the warfare condition.
Would you Demand for Entertainment? Yes, but maybe without Wifi kind of entertainment, perhaps because the Wifi network is unstable, etc.
So limited Demand and Supply occur during the war.
Example 2: Social Unrests or Riots
It’s similar to war, when we see one region fighting with each other to sustain their livelihood.
One’s beliefs or political preferences impact their livelihood in the long run. That’s why people are fighting with each other: They believe that the other’s beliefs are not sustaining their livelihood and vice versa.
It is those beliefs that make people fight for their future. It is the same belief that they both want a prosperous, happy, freedom from oppression, honor and dignity in whatever they choose to do in their life.
What would you say if then you should beg for food? or even beg for money? or even beg to get a job?
It’s normal right? But when you have to beg all the time? It’s either there’s something wrong with you or you just need to find another way around it.
Now imagine with Artificial Intelligence (A.I) and all the price hikes which entails given another 30 years, let’s say the cost of education shall rise 300%. How do you manage that?
This is why GCG offers you to actually invest in our Community Social Responsibility program:
This program shall help us to mitigate inflation, A.I and geopolitical instabilities risks while ensuring mankind to have the liberty to actually choose their life and dreams to life on.
It is never about a group of people; or only a fraction of a country or even 1 country itself.
It is about the whole world’s freedom to be what they are supposed to be within their potential.
Why the whole world? It is too much even to drag a community to understand the risks, but it is better than to have a hole that we have to fill each time because we forgot the world is round.
What happens in another side of the world shall trigger other things in other parts of the world.
That my friend, is a matter of fact.
Let me give you an example for it.
领英推荐
Example 3: World Events
I don’t care about what is happening to the United States. As long as my Whatsapp and Instagram work well, I am sure they can get by well.
Well honey, if you think you can live by Whatsapp and Instagram only then that’s great, why bother buying food or education or even purchase the next best thing?
In Indonesia, whenever there's turmoil in United States, the exchange rate between US Dolars vs Rupiah Indonesia is affecting the Indonesians opportunity financially in global market.
Oh China can curb their real estate crisis, they can bootstrap their livelihood again for sure.
That’s great, I’m sure all the midlife generation in China don’t feel the need to buy the real estate so they can figure out how they can pay their debt when there’s no demand to close the debt.
In Indonesia, when the real estate crisis hangs abundant of money for investment; it hinders also the opportunity for Chinese to invest in Indonesia.
So for me, it is not the United States or China alone; it’s the reality that each significant power brings to other people’s livelihood. I am not rooting on any side; for me it’s simple; whatever happened to them shall affect my livelihood.
So who am I to even interrupt their repertoir to be the best?
Nope, not planning to interrupt their best form. I believe they shall work themselves out better. But will it bring good for my livelihood? That is the thing that each of us should contribute to each other.
This is why ubuntu principle in article #1 is important:
A destruction for one of / any other side shall affecting the other side. And for an Economists who enjoy the ceteris paribus assumption:
It’s simple to think to destroy the other without even guarantee to sustain the whole world livelihood.
So if 1 can guarantee the whole world livelihoood, they can destroy the other party?
No, I know we are supposed to be crazy, but I’m sure when the time comes, that 1 party that can guarantee the whole world livelihood; it shall never choose to destroy the other party livelihood.
Why?
It is the same reason why that 1 party can exist all along. :) The power that was given shall bring good for others if we were able to work together.
In GCG Community, we build a community that sustains Government, Economic stabilities and Entrepreneurial spirit combined with Research/Adventure skills.
We believe everyone wants the same thing in their lives, as long as they are willing to believe and work together for it. Join us:
Why would you stick yourself to 1 thing that you know, when you know God has given the whole world to prove His love for us, mankind?
Matthew 28
Please Note:
I don't believe in allowing some one or other party is taking advantage of another party is the best way to win in any case, neither I would agree that it is acceptable to steal or do social engineering in order to gain an advantage.
It is just a plain disrespect to what has been given.
Happy Valentine’s day,
Gracia Jessica
Grace Consult Co-Founder