How does the economy work?

3,967,398 views

Jovens de Negócios

Published on Jun 9, 2021
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⚡️ YOUNG PEOPLE HAVE COME TO SCHOOLS! The Jovens for Schools program will bring financial education to all schools in Brazil! All in a didactic, playful way and in a way that young people understand, just like in the video you just watched. If you are a manager/director of a private school, just click on this link, register and our team will get in touch ???????? Form for For Schools: https://bit.ly/jovensforschoolsdesc --- In this video, we explore the theme of the economy and the role of the government in influencing it, focusing on the interest rate and its consequences. We begin by highlighting the gap in teaching about economics, leaving many people unaware of the financial and macroeconomic mechanisms that govern society. Economics is the science that studies the production, consumption and distribution of goods essential for human life and the improvement of quality of life. Understanding how the government controls this science is fundamental to understanding the direction of the economy and how it affects the population. The interest rate, represented in Brazil by the SELIC rate, is a vital tool that the government uses to influence the economy. This rate represents the return that investors receive when lending money to the government, making it more attractive to invest resources in the public sector than in the private sector. By raising the SELIC rate, the government attracts more investors to its bonds, reducing investment in the private sector and discouraging domestic production. This can generate an economic imbalance, leading to unemployment and lower economic growth. On the other hand, when the interest rate is reduced, the government seeks to boost the economy by facilitating access to credit and stimulating investment in the private sector. This scenario can boost production, job creation and economic growth. In addition to controlling economic growth, the government also uses the interest rate as a tool to combat inflation. Inflation can occur when there is more money in circulation than goods and services available for purchase, resulting in higher prices. To contain inflation, the government can raise the interest rate, making savings more attractive and consumption less attractive. With less money circulating in the economy, inflation tends to be controlled. However, it is important to consider that this policy can negatively affect household consumption and business expansion, which can impact employment and economic development. We conclude that understanding the economy and how government mechanisms, such as interest rates, work is essential to making informed financial decisions. Through this knowledge, people can prepare themselves to face economic challenges and seek opportunities amid economic fluctuations. ???? Insta Breno: https://bit.ly/2SS4JZE

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