The universal problem of scarcity

Scarcity is the basic economic problem. Human beings have unlimited needs, desires and wants, but limited resources to fulfill them all. To “economize” is to make a decision, to choose which goods will yield the highest satisfaction given the limited resources.


1) Cite two examples from your daily life in Macau, e.g. when you encounter the problem of scarcity and how you “economize.”

In my daily life, there are not much urgent problems of scarcity. However, everybody buy water when there is a red tide. In this situation, besides buying water I have to economize the usage of water too such as to take showers instead of taking baths in bathtub, to have a proper capacity of water for washing dishes and clothes. After this event, my family is used to economize water no matter water for drinking or cleaning. Money is also the problem that I encounter as human wants are unlimited and so am I. That is why I am scarcity of money and I believe it is also the problem of everyone in the whole wide world even the richest. Even though money is not omnipotent, it is helpless without money. Therefore, I have a plan to economize my money, at the meanwhile; I also have a plan for earning money. To scan the usage of money not to buy what I want but to buy what I need. To choose the worth need to spend on.

2)  Cite two examples of scarcity and economizing from the point of view of a government, e.g. the Macau government. In what situations does the Macau government encounter scarcity and how does it try to economize? You can refer to news articles.

There is no water scarcity problem in Macau, but Macau government encourage citizen to save water as Zhuhai which is the city who provide water to us is threatened by the water shortage of Pearl River Delta. In order to economize the usage of water, Macau government offers rebate for those who use less water comparing to the same period of last year. It is according to the news ‘Macau’s government to offer rebate for those using less water’ (2009-11-10). Macau is scarcity of resources and it is not the problem only affecting Macau also the whole wide world. As all the resources are limited, we have to economize the usage of resources and do not do it only in the last minute. Recently, Government makes efforts in carrying out the awareness of protecting the environment. To use reusable resources instead of stuffs like plastic. Macau government also encourages us to economize the usage of water and electricity. There are lots of ways that we can protect our environment and save materials. If we do not follow it, we will pay for it.

Reference
http://www.macaunews.com.mo/index.php?option=com_content&task=view&id=644&Itemid=3

The Survival Game

What advice would you give the government so people are happy and the system will be efficient?

I would suggest to change the system first in order to make people can earn their living but not rely on government only. Government should not limit the freedom of trade and also has to allow the foreign investments and trades so can improve the economic as we can see how success the economic reform in China is. China now is catching up US. It is not only creating more job opportunities but also to enlarge the economics. As the economic problems are improved, people will get richer than before. Even though it is not confirm how many people will not be poor, at least there some people are getting rich. Government should develop in more aspects and do not concentrate on one industry only. Beside factories, there are farming, engineering, technologies and so on. Diversification helps a country being more productivity. For sure there have to import and export production because there much be some product we can produce efficiently and some products we cannot produce efficiently. To improve the education system is important as well because educated people help to develop the country as there are some people good at invented something, solve the problems and so on. People do not only know how to work at factories because it could not help the development. It will make the country fall behind other countries. As the system change, people are not equal to poor. There are some richer people and some poorer people. So government has to carry out some policies or systems to control the distance between the wealthy and poor, therefore no complains or reforms from the poor. As there are some examples we can see if this problem is not control such us the occupy Wall Street in New York and other reforms in Europe. These are my advice for government to make people live happily and the system will be more efficient.

Reforms after the Industrial Revolution

Discuss three economic, political, social reforms

-The wages of labors in the past are very low but nowadays there are more and more countries carry out the bottommost wages for the labors. All the employers have to stand to this law otherwise they will be accused.

-Division of labors nowadays makes the process of production run more efficiently. In the past, people most do the farming and they will not divide the work so one person finish all the process of the production. Nowadays, people are specialized in working their part of job as everyone got different talents and it is a good way to combine all the people with different talent to finish the process of production as a result of saving much more time and producing more productions.

-Economics policy reform. For example: the ‘open-door’ policy in China. To allow foreign investors and trades in China lead Chin’s economics growing very fast in the recent 10 years. There are more jobs for people and they will not do the farming only. It makes China became more progressive.
 These are the three economic reforms



-Protection of children. There are many children work and incur unfair payment and working hours in the past. Now there are policies to protect the children avoiding those cruel employers to use them for very low wages and overtime working.

-Labor law is to protect all the employees suffer unfairness, discriminations and other problems. There are no places for poor to complain in the past and not many organizations can help them in case when they suffer something bad from employers such as sex harassments, sexism and so on.

-Population policy in different countries is different and it helps to change the negative aspects of the problems which are brought by population. As natural resources are limited, it is not enough for all the people if they are getting more and more. The world now reaches 7 billion people. We have to control it in order we will be get into scrapes. China is carrying out one child for each family to control the overpopulation.
 These are the three political reforms



-Education system nowadays has improved a lot compare to the past. There is free fee education for all the citizens and it depends on the countries. In Macau, there are 10 years free education and this change helps to improve the social system in the society. There are more and more people being educated. It is very important to the development of the country.

-Pollution is a serious problem especially in the time of industrial spring up. There are lots of factories and technologies built up. Air and sea pollutions are getting more and more serious. Nowadays, people realize the harmful effects of pollution and more people and organizations to face squarely this aspect.

-Public transportation has improved a lot as there is no bus or taxi in the past. For example: there will be LRT in Macau to improve the public transportation system
These are the three social reforms.

The ideas of Adam Smith

1. Mercantilism is en economic theory which stated that a nation should maximize exports and minimize imports and try to accumulate more and more gold. Adam Smith rejected mercantilism and said a nation benefits from the import of goods that other nations can produce more efficiently. Do you agree with Adam Smith or with Mercantilism? Explain using examples from your daily life in Macau.

I agree with Adam Smith because if there is only export, it will lead the country run out of resources as we all have limited resources only. Import and export run at the same time can help each country produce more products efficiently and it makes stuffs being global in the world. Even though there are disadvantages of globalization, there are lots of advantages of globalization around such as crops, clothing, food, technology, entertainment and so on. It is a big influence in our life. if there is no import, we are not able to watch the Hollywood movies or Hong Kong movies in Macau. We do not have a chance to taste the food or snacks of different countries.  There is no coca cola in Macau. I do not have the fan or air-conditioner which are made in Japan. I can only use the cosmetics that are made in Macau but Macau is not producing any cosmetics! There are lots of disadvantages and inconvenience if there is only mercantilism. It is because we do not have goods but the goods made in Macau only. What we got is only money but you are only able to use and but the stuffs in Macau. In the meanwhile, export makes other countries know Macau and have stuffs that are made in Macau likes the almond crackers or Macanese egg tarts. Therefore, we can see from our daily life in Macau how Adam Smith’s theory work success.


2. Adam Smith believed that the private sector should run businesses and that the government should limit its activities to administering justice, supporting services and national defense. In our class last Friday, we listed the many ways the government influences life in Macau. Would it be good if the government took over all the businesses in Macau? What would happen? Explain.

It would not be good when the government took over all the business in Macau because there is no competitive in the market and it is too easy for government runs out of the capitals or funds. The corruption may be getting more serious. Government should only be responsible for administering justice, supporting services and national defense. When the market in Macau fails, government should maintain the economics. What government should do is protect the society in every aspect such as economics, public security, subsidies, the fairness in the private business or government.

Adam Smith - Alive in 2012

Which of the three main contributions of Adam Smith do you think is the most important or most relevant in the world today? Which one do you find the most interesting or most insightful? Explain.

The three main contributions of Adam Smith that I think is most important or most relevant in the world today are division of labors, free market and the role of government. Division of labors is a way to reduce the time of productivity efficiently. If there is only one person producing, it will take much more time than few people cooperates to accomplish the product. As it reduces the time of producing, there are more production can be produced. The article ‘1,400 govt cars to be sold in Wenzhou reform’, (2012-04-13, china daily) is about the reform of government cars. If there is no division of labors, there is hard to have 1,400 government cars are produced in a short period. Even to auction the cars need labors to take their parts of jobs so can do the auction more efficiently. Free market is one of the most important contributions to the world’s economics. It is also the base of trade. If there is no free market, there will not much benefits of trade. Everyone sells and buys in the free market and the price is the invisible hand as it is base on the supply and demand. The article ‘China’s movie sector becomes second-largest in the world’ (2012-04-18, Zheng Yangpeng, china daily) show us the demand in China is very large and it overtook Japan. The role of government is important in every aspect of society likes economics, social equity and development of the country. When the market fails, government redeems the market for the country and citizens. The article ‘Europe’s rescue plan falters’ (2012-04-18), we all know that the financial crisis in Europe. The government plays a very important role to redeem the crisis as it influences the whole world’s economics. If there is no the role of government, it will be collapsed directly and expeditiously.

I find the role of government is the most insightful because even there is a free market helps to trade with others in order to improve the economics, if there is no government approves or helps, it will not be worked. Likes China government, if the china government did not approve the ‘open-door’ policy, there will be such a active market now in China. Therefore, Government makes a big influence to the stock-market, economics and development of the country.

Reference
http://www.chinadaily.com.cn/china/2012-04/13/content_15046097.htm http://chinawatch.washingtonpost.com/2012/04/chinas-movie-sector-becomes-second-largest-in-the-world.php
http://online.wsj.com/article/SB10001424052702304331204577352031520413246.html?mod=WSJAsia_hpp_LEFTTopStories