Economy

What is economy?

Economy is a system of trade and industry by which the wealth of a country is made and used. We can also define the word economy as an economy system in which the government controls the foreign trade of the country. An economy system is to increase a nation´s wealth by government regulation of all the nation´s commercial interests. It is also an entire work of producers and consumers of goods and services in a national community. It basically, moves all our country because it is involved in the imported and exported materials of our country to many others that surround us nowadays. 

In this image it actually represents that they want to obtain as much gold and silver (the first servant, colony seen in the picture) as they can so that they can have a favorable balance of trade and to export more materials than we import, with these steps it will be a great profit. The idea is to bring raw materials (the other servant, colony) from other countries and to export our materials to other countires. Later it will have an incredible imapct in the formation of the American colonies.

This image represents the triangular trade route between England (British goods) and the American colonies (raw materials)  and the slaves. These three points in the map form the triangular trade route of economy.

In this case, the states need to intervene in economy as much as they  can to make sure they sell more than they buy, a positive balance of trade so that they can have a great benefit form it. Before the economy came, in history it existed the mercantilism, which was an economy theory practice in the 16th to 18th century. Before the manufactured goods were produced by cheap raw materials but where did the raw material come from? Colbert said that we should buy the raw materials from the colonies at a very low price and later sell the manufactured products to the colonies at a very high price. He recommended to monopolize trade in your colonies only if it is needed. 

Economy satisfies people´s needs by getting the resources to them. This means economy makes goods from resources to satisfy needs, this was known as production but what does it need? Although it needs resources, labor and a capital such as money, machinery, buildings... The economy agents did the production with the help of these two. The economy agents are the families, the state and the trade companies. Firstly the families because they have their needs and demands while they are working in a company. Apart form this, they also pay taxes to the state. 

Then, the state collects this taxes from the people and does the same with the companies. Finally to conclude, the companies produce supply and pay salaries to people and taxes to the state. These are the three balance of economy, if everything is in balance, economy will work perfectly. 
The economy is divided into three sectors: the primary sector, the secondary sector and finally the tertiary sector.
The primary sector includes the activities that obtain resources from nature like for example crop agriculture basically farming, livestock breeding, forestry or the forest explotation, fishing and finally mining. The negative effects, like for example soil erosion, deforestation and general contamination can be handled by ecological agriculture. The Demographic changes in landscape and the new activities had their great effects on the primary sector.

The secondary sector includes the activities that consist of construction like for example buildings, roads, bridges... everything related to the real infrastructure), also including non-renewable energy, renewable energy, heavy industry, capital goods industry and light industry. 

Finally, the tertiary sector includes activities that do not produce goods but it offers services to the society such as transport, education, health, tourism, administration, cultural activities, trade and so on. They can be public services (managed by the state or even the local communities) or private services (offer services but obtain profit as well). Depending on the function of the activities they can be social (education, health), administrative (processing public and private documents), financial (banks and saving banks), cultural (museums), personal and business services (lawyers and architects), information and communication services (radio, TV, technology), comercial services (trade), transporrt (either by land, river, sea or even air) and tourism (entretainment and relaxation). 

- https://www.youtube.com/watch?v=Bouw3MvmrYM (A short mercantilism video)
- https://www.youtube.com/watch?v=oiwvvNMOjCE (A mercantilism video including more details)
- http://study.com/academy/lesson/the-13-colonies-developing-economy-overseas-trade.html (A video of the 13 colonies, the developed economy and the major european trade routes)