David Broussard

ECON 1010

07/27/19

Professor Holland

Throughout this social economics course, I have learned many new subjects

and really picked up on material that I had no idea was so relevant to myself and

the world around me. One topic in particular that really stood out to me in

particular is the Stock Market. When I say the stock market though, I am not

speaking in regards to how to trade or how to decipher the various options. I am

referencing the underling world of the market. This pertains to: causes for a

recession, the effects we bring to the market as consumers to those who own said

market, and exactly just in general, what it is. This will be just a reflection/review

of my time studying the topic so bear with me if I miss a few points but I will

covey the message as clear and concise as possible.

For talk about recession it will be important for us to understand what a

recession it specifically, in layman’s terms, a recession is when there is a decline in

spending in the market causing no growth and no money to be placed back into

circulation for an X amount of time. When we think about those attributes since

they cause recession, remember, realize that these affects only take place when the
market is not in your favor and perse inflation rates are increasing and

unemployment is rising. Since the balance is off between workers and goods and

the items that are too expensive now are being purchased by only a small

percentage on the nation you are in that exact realm of a recession.

It is a very interesting subject when thinking about us as “consumers”, we as

citizens used to be considered “customers” but due to our heightened sense of

consumerism, we are now consumers. Within the topic itself, it can be vast since

the market is broad. Participating in the market as a consumer is a very wise

financial decision you could ever make. With examining the actual purpose of

consuming, you get a different perspective on what exactly lies within it. The

consuming of goods is what keeps our economy progressing. Since we are unable

to produce such goods using our own skills then we are now using money thus

helping all layers of consumerism yet still participating in aiding the fiscal and

monetary supply.

With the overall view on the stock market and what it is economically, it’s

not the easiest concept to understand. We hear terms like: NASDAQ, S&P 500,

APPL, YHOO, and the DOW. These are just a few of the markets and some of the

most profitable ones as well. We as consumers don’t understand the importance of

these markets. We must have these markets in order for us to have a growing

economy. With any downfalls we face in this country they first affect the top
markets in the country and since they are the first affected and are the ones that

control the majority of trade and other goods that are in this country we then get

full circle and come back to a recession and it trickles down from there.

In conclusion, the/a recession is something that an economy may never need

but when it happens it is to be known that it’s only because of the market failure

that has taken place, within the difference of consumers versus customers you find

the space of balance but also where we as a society stand to those that supply our

goods. What is missed through the high supply cost is that we have to face these

problems whether they be positive or negative. Last but most important, the stock

market in its entirety is something that is beyond important to our economy and the

growth that it brings to us as a country is needed. We feel the grunt of all these

topics simultaneously or one at a time and with that being said, economics truly

run our entire living abilities.