Adam Smith is maybe the most well-known economist through all times. And the wrote about the wealth of nations, and that the markets are led by an unvisible hand, where they are reaching the goals from time to time. And he wrote about an inquiry into the causes and the effects of wealth of nations.
We should maximize the goals to wealth and utility in any society due to the constraints that we find there, and these constraints are either requirements or they are restrictions. But any society should attend to reach the best wealth for as many people as possible, and people should use their freedom and reach the goals that they have in their minds.
What about the firms and the households? They should maximize the pleasure or the utility subject to the constraints that are coming there like for instance financial services for banks and insurance companies, and the revenues that they are earning from time to time to make the life be sure and strong. And that is the philosophy of life, we should just survive while we are her eon the planet.
So, what is the books filled with in the literature? We should always try to make as much pleasure as possible and as little pain as possible. So, life on the earth is filled with variants of all conceivable due to cognitions and emotions and actions, and as humans with fitness we are always in these processes and outcomes, and we cannot avoid them if we are living the life as any other humans also are here.
Should anyone be interested in your life? Yes, if it is exciting and interesting, and if it gives returns to the society and the goals we are trying to reach like a nation! And wealth and utility are goals we should try to maximize in microeconomic analysis, and in addition we should try to minimize the costs and the pains.
So, what about macroeconomic issues and international economies? Well, according to the novel and the history of Robinson Crusoe by Daniel Defoe, economics is about making exchanges between people and between nations. And we are using capital and labor and landscape to accomplish these things. And we are giving something to each other to receive other things, and today we have simplified these transactions, and we can just buy products by using money. And macroeconomics and international economics are about making trades with products, and we have production, sales and costs by doing these things, and we need transportation from the vendors and to the customers, and sometimes we do not need transportation because the business in question we are doing trade with is located nearby where we are located as a firm and a household.
The goals we are working with as a nation, as a firm and as a household; What are we trying to do? We try to get the revenues as big as possible, and to have control on the costs. So, value creation is important for the firms, and this is measured just in economic units or money or the currency, and we are trying to achieve the revenues as high as possible, both to earn much money, but also to pay high salaries and lower salaries for the people being employed, and the more money we earn, the better is the situation for the state, the firm and the household. And we are also trying to achieve sociopolitical goals in the societies, trying to make warm and durable human relations among the people being engaged at every level in the country where we are.
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Sverre Larsen
Kristiansand, Norway
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