The study of macroeconomics examines interactions of individuals on a very large scale. Our society is based on trends in spending and our behaviors are analyzed and put in to numbers. This paper discusses a few scenarios that we see every day including purchasing groceries, massive layoffs, and decreasing taxes that show the importance of macroeconomics. .
Purchasing groceries.
Most of the goods we see at our grocery stores are grown, produced, and shipped from foreign countries, and is influenced by the global economic system. When we shop for groceries, we see foods from Mexico, Brazil, Chile, China, France, and as well as many other countries. All of these countries have some type of advantage in the international trade market and makes it more efficient to source grocery product from all over the world. It would be far less efficient for us to attempt to produce these goods ourselves and would adversely affect supplies and prices. As consumers, we create a demand for these products and those countries with the advantage are the countries that are able to succeed in this free market (Colander, 2013). Government sanctions and restrictions add another complex layer. Declaring: "with the goal of protecting Russia's national interests", Vladimir Putin "banned or limited the import of food products from countries that imposed sanctions on Russia", including the US and European Union. Russia imports 40% of its food (Ioffe, 2014). .
Massive Layoffs.
Massive employee layoffs have a serious and lasting, negative effects on the economy. First and foremost, businesses are responsible to their shareholders, and this makes layoffs a common occurrence to save money in tough economic times. For those that are being laid off, this usually means that they will have less money to spend. Luxury items like new clothes, trips, and other non-essential items are the first to be cut. Essential goods ae usually next if they are unable to find work for a long period of time.
