How the Economy Works

For a course on “Advancing Free Societies” I’ve been assigned to write an article on Trade.

Have you ever lined upright dominos, one in front of the other? And if you have you know if you knock n down the rest will be knocked down one by one.

Well that’s basically trade. Hundreds of things effect our markets. In this video it shows you how diners can affect the production of pencils.

Lets build off that. The wood that makes the pencil.

Comes from a tree.
A lumber company must cut down said tree.
Now they have to buy materials do to cut it down
Now dozens of others markets get involved (construction, automobile, buzz-saw, ect)

Here’s we’re the diner comes in.

Workers had to dine during breaks so local businesses are now affected.
The invest into local economies.

Now that lumber must be:
Transported
Processed
Shipped

So now, you have HUNDREDS of markets involved in the making of a simple pencil.

Our free market is incredible, beautiful, complex, and intricate.
Something not to be taken for granted.

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