Summary of ‘The Economics of Social Problems’
Firstly, the book was very captivating as it was able to relate economic principles with societal problems we face in the modern-day. The book examines how economic policies in sectors such as housing, crime, the environment, and pensions have evolved in recent years. I found that the most interesting chapter was social objectives and the allocation of resources, more specifically the explanation on the distinction between efficiency and equity which was extremely informative as the authors were able to use a clear example of two members of society who produce & consume their own apples. The distribution of the apples between the two individuals is considered a matter of equity. For instance, regardless of the total number of apples produced, the combinations possible of who gets what number of apples is a question on equity. However, we can say that system of work that produced 10 kg of apples per week is an efficient system if their total benefit is greatest at 10kg per week.
The book encouraged me to develop a mindset that separated how producers operate into the level of efficiency that a product is produced at and the resultant consumption of the product as a question of equity. As a consumer, we don’t think about the problems associated with efficiency that producers constantly face. This is especially highlighted during the coronavirus pandemic where there was a sudden change in the allocation of stock to produce personal protective equipment. Efficiency was key for producers to mass-produce PPE to meet the international demand for it and to maximise profits, they had to supply the products at a level of equilibrium that would satisfy the constantly changing demand for them.
My Next Generation Economics competition entry:
What economic policies should governments around the world use to economically empower women and girls?
Firstly, I think that opportunities for girls to be economically empowered come too late in life where they might be less interested or feel pressured away from their potential to be economically empowered. Therefore, I would propose that governments launch various interactive programs in collaboration with economic agencies targeted at a younger audience of girls aged 11 and above. Furthermore, these can be implemented in regular school life so that there is no pressure to sacrifice any social priorities in order to participate in a program that economically empowers women and girls. Moreover, these programs should continue throughout secondary education and onto higher education where universities can also encourage women to join or continue their education in economics. It would also be extremely beneficial for girls to hear from successful women in industries typically dominated by men which would be inspiring and motivational. In addition, there should be more incentives for employers to provide more opportunities for girls and women such as more internships and apprenticeships exclusively open to women or creating a fund that financially supports the economic education of women and leads to jobs and further opportunities once their education is complete.
Furthermore, there should be more opportunities for older women who might consider a career change later in life. It can be a tough decision to change careers at a later stage in life and it doesn’t help that there is clearly a lack of assistance available to older women. Various programs should also be available to women within the companies they work for so that they can make a gradual change in their career path whilst taking advantage of their experiences in other fields. Programs should include basic economic theory whilst incorporating real problems the world faces which would make them relatable and easier to understand. These programs can be funded by the government at no extra cost to employers as an incentive to adopt the programs. Moreover, the inception of an online platform containing free virtual courses should be created and funded by the government at various levels of difficulty so that women can learn about economics at any stage of their lives.
