ID: Economics

According to Investopedia, economics is defined as "a social science that studies how individuals, governments, firms and nations make choices on allocating scarce resources to satisfy their unlimited wants." Basically this means that economics studies individual's choices that they make to satisfy their wants. At first this kind of bothered me because it shows the way that businesses use us, the consumer's, to make a profit. Now of course the consumers are what makes the businesses profits,I understand how that works. We, the consumers, have wants or needs and the businesses provide it, it's as simple as that. 

Although I understand how it works, I cant help but to be a little insulted. Consumers are often manipulated into buying things we dont need and businesses take advantage of us. Take Jordans as an example. Almost everyone wants Jordans and that is mostly because of what is portrayed about them. This is my view on the Jordans:

Nike sets the price high to attract mainly the people who cant afford the sneakers. This makes the sneakers seem like a dream one wants to make come true. As soo as they have the money they go buy the sneakers.

And this continues to happen every time a new sneaker is released. People even go so far and stand on long lines to spend maybe $100 on a shoe that took only about $16 to make. 

Appendix 1. Breakdown of costs for a pair of Nike shoes from an Indonesian plant, 1995 (Behind the Swoosh). http://www-personal.umich.edu/~lormand/poli/nike/nike101-8.htm

Production labour Materials Rent, equipment Supplier's operating profit Duties Shipping Cost to Nike	$2.75 $9.00 $3.00 $1.75 $3.00 $0.50	$20.00
Research and development Promotion and advertising Sales, distribution, admin. Nike's operating profit Cost to retailer	$0.25 $4.00 $5.00 $6.23	$35.50
Retailer's rent Personnel Other Retailer's operating profit Cost to consumer	$9.00 $9.50 $7.00 $9.00	$70.00

In my opinion, it does not make since to waste money on such materialistic things. Especially when they are over priced and the company is one to manipulate. One thing that I found funny was the fact that Michael Jordan doesnt even wear Jordans. 

Since it is our choices that shapes a businesses' success, maybe we should think more about our choices.