Critical Review of the Relationship Between Economy and Society

CRITICAL REVIEW OF THE RELATIONSHIP BETWEEN ECONOMY AND SOCIETY
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Economic and economics are the terms associated with the production, use, and trade of goods and services in a society. Although not used till the advent of the Industrial Revolution, the term economy is as old as human societies as it lays the foundation of human society. Therefore, the economy is related to the immediate experience of an individual, and this feature makes it highly relatable to anthropology. Anthropology is the study of different aspects of humans at the individual and social level by studying their past and present to determine how human societies are formed and which factors led to the grouping of people. In other words, anthropology deals with a comparative analysis of various social and cultural aspects of society.
Since trade and exchange of goods make up an integral part of human interaction and relationships, economic issues cannot be taken as a separate domain as a study suggests that addressing economic problems is such a need of an individual that makes him ignore or compromise all other social relationships (Hausman 1994). Therefore, it is imperative to comprehend the nature, dynamics, and effects of the relationship between anthropology and economics to formulate a better way of dealing with economic and social issues and problems. Therefore, the following paragraphs substantiate the significance of economics for making a better society and social life using scholarly research studies and practical information.
Understanding economics and its influence is mandatory for realizing its impact on human societies as the economy is an essential part of the working and progress of a society since it deals with fulfilling the basic needs of human beings. Since human needs necessitate their relationship with other humans and even animals, economic and economic choices indirectly determine their attitude and relationship with people (Rabie 2016). Furthermore, another economist discusses the dynamics of economics and explains that an economy, whether in ancient times or today’s world, comprises a network of many entrepreneurial ventures, mostly privately owned (Nijkamp 2003). Another critical aspect of the economy is that it is based on the principle of self-interest on the part of both consumer and producer, as they tend to ignore many other relationships for fulfilling their economic needs (Hausman 1994).
In a recent study conducted to understand and evaluate the productivity challenges that the economies of the UK and Ireland are facing, a scholar points out this very aspect of the economy and claims that understanding people, their needs, and potentials are essential for a productive economy. This finding underscores that people and their activities are the yardsticks to assess the impact of the interaction between the economy and society. For one economist, the economy is inherently hierarchical as it involves an intricate network of the decision made by various people at various levels; therefore, it is a collective process. Furthermore, because of its hierarchal nature, it involves a wide array of people, including starting from families, all the way to large corporations and g...