Everyone is participating in economic activities, but not many truly understand how the economy works. Maybe you haven't thought about how your actions in a store affect the entire supply chain. Perhaps you feel confused when reading news reports about unemployment rates or inflation. In fact, to understand this thoroughly, in simple terms, it’s about figuring out how money, goods, and services flow throughout society.
The essence of the economy: an interconnected ecosystem
First, it’s important to understand a core idea — the economy is not mysterious; it happens around you. The economy is the complete process of producing, selling, buying, distributing, and consuming goods. From the coffee you drink in the morning to the clothes you wear, from work to savings, all of this is part of the economy.
In simple terms, the economy is like a human body system. If one part has a problem, it will affect all the others.