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Relevance of Economics and Creativity

The document discusses the relevance of economics and creativity. It explains that economics studies how resources are allocated and influences many aspects of daily life and industries. While creativity provides personal satisfaction and is important for economic development, economics can help understand creativity by measuring its economic and social value and identifying relationships. Creativity is becoming a highly valued asset in the new creative economy.

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47 views

Relevance of Economics and Creativity

The document discusses the relevance of economics and creativity. It explains that economics studies how resources are allocated and influences many aspects of daily life and industries. While creativity provides personal satisfaction and is important for economic development, economics can help understand creativity by measuring its economic and social value and identifying relationships. Creativity is becoming a highly valued asset in the new creative economy.

Uploaded by

Іванна Довбак
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as ZIP, PDF, TXT or read online on Scribd
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Relevance of economics and

creativity

By Ivanna Hrysiuk
What is economics?

Economics is one of the most popular fields of study at universities around the globe. A social
science concerned with the production, distribution, and consumption of goods and services,
economics studies how individuals, businesses, governments, and nations make choices about how
to allocate resources.
5 reasons why economics is relevant

1. Informs decisions
Economists provide information and forecasting to inform decisions within companies and governments. This knowledge of
economics – or economic intelligence – is based on data and modelling.
2. Influences everything
Economic issues influence our daily lives. This includes issues such as tax and inflation, interest rates and wealth, inequality and
emerging markets, and energy and the environment. A broad subject, economics provides answers to a range of health, social and
political issues that impact households and wider communities.
3. Impacts industries
Firms of all sizes and industries have to rely on economics, whether that’s for product research and development, pricing strategies
or how to advertise. This wide influence means studying economics can open up a variety of career options across all sectors of the
economy, from agriculture to manufacturing, to banking and consultancy. 
4. Inspires business success
Understanding how consumers behave is vital for a business to succeed. Economists use theories and models to
predict behaviour and inform business strategies. For example, how to analyse ‘big data’.
5. International perspective 
Economics affects the world we live in. Understanding domestic and international perspectives – historic and current –
can provide a useful insight into how different cultures and societies interact. For international corporations,
understanding the world economy is key to driving success.
Why will economics be always in need?

1)People like to think and talk about the economic issues that affect them as consumers, workers,
producers, investors, citizens and in other roles they assume over a lifetime. Economic literacy also gives
people the tools for understanding their economic world and how to interpret events that will either
directly or indirectly affect them. Nations benefit from having an economically literate population because
it improves the public's ability to comprehend and evaluate critical issues. This understanding is especially
important in democracies that rely on the active support and involvement of its citizens.
2) For some economic decisions, such as buying a home or investing in the stock market, it is possible to hire
professional or technical help when making a choice, but in most cases it is neither economical nor practical for an
individual to hire a skilled professional every time an economic decision needs to be made. Even when such advice is
given, the final choice must be made by the individual, not the adviser. What this means is that each person must
ultimately serve as his or her own economist in making many economic choices, whether those choices involve buying
a product, getting a loan, voting on candidates and economic issues, or something else. Economic literacy improves the
competence of each individual for making personal and social decisions about the multitude of economic issues that will
be encountered over a lifetime.
Economics can tell us a surprising amount not just about the financial value of the creative industries,
the jobs they create, the exports they generate - but also about how they impact on the economy as a
whole, and about the way that the creative process itself works.
The right economic tools can be applied to gain a deeper understanding of creativity: the realm of
originality, imagination, experimentation and expressiveness, all values which are core to this
institution. Thinking about it, perhaps that's not so surprising after all. The economy presents
opportunities and also places constraints on the creative work of all individuals. And what we call the
'Creative Economy' is an (albeit complex) aggregation of interactions between these same individuals.
Putting valid structure on this complexity, devising ways of measuring economic and
social value, and identifying cause and effect are the main contributions that
economics can make to understanding creativity.
Economy vs Creativity

Creativity is important for people and society on many levels; it can not only generate personal satisfaction – it
is also important for economic development. 
Being creative means solving a problem in a new way. It means changing your perspective. Being creative
means taking risks and not being afraid. It means breaking with routine and doing something different for the
sake of doing something different. A creative life and a creative role in life is the ultimate state of awareness and
the path to enlightenment. Being creative is the opportunity to learn the nature of things and contribute to the
advancement of the world.
Creativity is becoming the most highly prized asset in our economy, and yet it is not a commodity. The creative
individual is the new mainstream, the great emerging class of our time.
With widespread automation replacing manufacturing, the big story unfolding is the rise of a creative ‘class’ –
sharing the space with the working class and the service sector. Creativity is set to power human development in the
21st century.  
2018 is regarded by many as the year when we officially left behind a transitional knowledge-economy to enter a
creative economy which will shape the rest of the current century.
As 21st century professionals, we now have the added responsibility of staying current and continuously expanding
our skills, independently of our age and where we live or work. We must understand that ‘creativity’ is becoming the
decisive resource and critical tool to solving complex challenges and to lead organisational change across all business
functions and industries.
The new economic reality means that if you are a creative worker, whether in the arts, science, or business, then your
talent makes you highly desirable – and opens up the possibility of spectacular creative and commercial success, so
nurture it no matter what your age is.

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