What, in your opinion, are the negative effects of the low level of economic knowledge of society and what can the low level of economic knowledge of a significant part of citizens in society lead to?
A recent survey shows that only 60 per cent of the public in Poland knows what inflation is, including the awareness that a drop in inflation from a high level means that prices are still rising but more slowly. In Poland, in February 2023, the government-controlled Central Statistical Office showed consumer inflation at 18.4 per cent. Since March, disinflation has been realised. In April 2023, shown by the Central Statistical Office, consumer inflation stood at 14.7 per cent. the most optimistic forecasts of the central bank cooperating informally with the government, i.e. the National Bank of Poland, suggest that Poland's falling inflation may only fall to single-digit levels in December. After deducting international factors, i.e. the prices of energy raw materials, energy and foodstuffs, core inflation, i.e. that determined by internal factors in Poland, still stands at around 12 per cent. The drop in inflation since March has been largely determined by a reduction in the high, until recently excessively high margins and prices of motor fuels by the government-controlled, monopolistically operating, state-owned gas and fuel concern, which holds over 90 per cent of domestic production and sales of motor fuels. These reductions are the result of criticism in the independent media that this government-controlled concern is acting anti-socially, making excessive profits by maintaining increased margins and not reducing the price of motor fuels until early 2023, despite the fact that the prices of energy raw materials, including oil and natural gas, have already fallen to pre-war levels in Ukraine. Citizens can only find out from the government-independent media what is really happening in the economy. Consequently, in the government-controlled meanstream media, including, among others, the government-controlled so-called public television, other media, including independent media, are constantly criticised and informationally harassed. But back to the issue of economic knowledge of the public. Taking into account the media in Poland, it is the media independent from the PIS government that play an important role in increasing economic awareness and knowledge, including objective presentation of events in the economy, objective and consistent with the fundamentals of economics explanation of how economic processes work. The aforementioned research shows that as many as 40 per cent of citizens in Poland still do not know what inflation is, do not fully understand what the successive decrease in inflation consists in. Some of these 40 per cent of the public assume that a fall in inflation, even from a high level, i.e. the disinflation currently taking place, means that the prices of purchased products and services are supposedly falling. The level of economic knowledge is therefore still low and various dishonest economic actors and institutions take advantage of this. The low level of economic knowledge among the public has often been exploited by para-financial companies, which, in their advertising campaigns and in the presentation of their image as banks, have created financial pyramids that have taken money from the public for unreliable deposits. Many citizens lost their life savings in this way. In Poland, this was the case when the authorities overseeing the financial system inadequately informed citizens about the high risk of losing the money they deposited with such para-banking companies and pseudo-investment companies as Kasa Grobelnego and AmberGold. In addition, the low level of economic knowledge in society also makes it easier for unreliable political options to find support among a significant proportion of citizens in society for populist pseudo-economic policy programmes and, on that basis, also to win parliamentary elections, and to conduct economic policy in a way that leads to financial or economic crises after a few years. It is therefore necessary to develop a system of economic education from primary school onwards, but also in the so-called Universities of the Third Age, which are mainly used by senior citizens. This is important because it is seniors who are most exposed to unreliable, misleading publicity campaigns run by money laundering companies. Thanks to the low level of economic knowledge, the government in Poland, through the medium of the controlled meanstream media, persuades a significant part of the population to support a real anti-social, anti-environmental, anti-climatic, financially unsustainable pseudo economic policy, which leads to high indebtedness of the state financial system, to the continuation of financial and economic crises.
In view of the above, I address the following question to the esteemed community of scientists and researchers:
What, in your opinion, are the negative consequences of the low level of economic knowledge of society and what can the low level of economic knowledge of a significant part of citizens in society lead to?
What are the negative consequences of the low level of economic knowledge of the public?
What do you think about this topic?
What is your opinion on this subject?
Please respond,
I invite you all to discuss,
Thank you very much,
Counting on your opinions, on getting to know your personal opinion, on an honest approach to the discussion of scientific issues and not ready-made answers generated in ChatGPT, I deliberately used the phrase "in your opinion" in the question.
The above text is entirely my own work written by me on the basis of my research.
I have not used other sources or automatic text generation systems such as ChatGPT in writing this text.
Copyright by Dariusz Prokopowicz
Warm regards,
Dariusz Prokopowicz
https://www.oecd.org/education/The-economic-impacts-of-coronavirus-covid-19-learning-losses.pdf
In my opinion, a low level of economic knowledge within a society can have several negative effects. Here are a few examples:
· Poor financial decision-making: Without a solid understanding of basic economic concepts, individuals may struggle to make informed financial decisions. They may not comprehend the consequences of their actions, such as taking on excessive debt, failing to save for the future, or making ill-informed investment choices. This can lead to personal financial crises and hinder economic growth at a societal level.
· Vulnerability to exploitation: Lack of economic knowledge can make individuals more susceptible to exploitation by unscrupulous individuals or organizations. They may fall prey to scams, predatory lending practices, or misleading financial products, as they are unable to critically evaluate the risks and benefits involved.
· Inefficient resource allocation: Economic decisions made by individuals collectively determine the allocation of resources in a society. When a significant portion of the population lacks economic knowledge, there is a higher chance of inefficient allocation of resources. This can result in the misallocation of capital, labor, and other productive resources, leading to reduced economic output and lower overall societal welfare.
· Policy misconceptions and misguided voting: Economic issues often form the basis of public policy debates, and an uninformed electorate may hold misconceptions about economic policies and their consequences. Without a solid understanding of economic principles, individuals may make ill-informed choices when voting or advocating for specific policies. This can result in the adoption of policies that have unintended negative consequences or fail to address the underlying economic challenges effectively.
· Widening economic inequality: A lack of economic knowledge can contribute to widening economic inequality within a society. Individuals who understand economic principles and have access to financial education are more likely to make strategic decisions that enhance their economic well-being. Conversely, those with limited economic knowledge may struggle to overcome economic challenges or seize opportunities for economic advancement.
To address the low level of economic knowledge in society, several steps can be taken:
· Improved education: Emphasizing economic education in schools and universities can provide individuals with a foundational understanding of economic concepts, enabling them to make better financial decisions and engage more effectively in economic discourse.
· Financial literacy programs: Governments, non-profit organizations, and financial institutions can collaborate to develop and promote financial literacy programs. These initiatives can provide practical knowledge about personal finance, budgeting, saving, investing, and other essential economic skills.
· Accessible and clear information: Governments, institutions, and media outlets should strive to provide accessible and unbiased information on economic issues. This can help individuals understand complex economic concepts and make more informed decisions.
· Public awareness campaigns: Raising public awareness about the importance of economic knowledge and its practical applications can help foster a culture that values economic literacy. Campaigns can be designed to promote financial responsibility, critical thinking, and informed decision-making.
As a researcher, I believe that the low level of economic knowledge in society can have several negative effects. Firstly, individuals who lack economic knowledge may struggle to make informed decisions regarding their personal finances. They may not understand concepts such as inflation, interest rates, or investments, which can lead to poor financial choices and potentially even debt. For example, they may not know how to budget effectively or take advantage of opportunities for savings and investment.
Furthermore, a lack of economic knowledge can hinder individuals' ability to navigate the job market. Understanding the principles of supply and demand, as well as economic trends, can greatly influence career choices and job prospects. Without this knowledge, individuals may struggle to find suitable employment or may be less successful in negotiating fair wages.
On a broader scale, the low level of economic knowledge in society can have negative effects on the overall economy. Economic decisions made by governments and policymakers can have far-reaching consequences, such as fiscal policies, tax rates, and regulations. Without a well-informed citizenry, public policies may be misguided or ineffective, leading to economic instability, inequality, or even recessions.
Another negative effect of the low level of economic knowledge is the potential for exploitation. Without a basic understanding of economic principles, individuals may become vulnerable to scams or fraudulent schemes. They may not recognize warning signs or understand the long-term consequences of certain financial choices. This can lead to financial losses and a lack of trust in economic systems.
Finally, a lack of economic knowledge can hinder participation in democratic processes. Economic decisions are often intertwined with political decisions, and understanding the economic impact of different policies can greatly influence voting choices. Without an informed electorate, policy decisions may not align with the best interests of society as a whole.
In conclusion, the low level of economic knowledge in society has various negative effects. It can lead to ineffective personal financial management, limited job prospects, misguided public policies, vulnerability to exploitation, and hindered participation in democratic processes. Therefore, it is crucial for individuals and educational institutions to prioritize economic education to mitigate these negative consequences and promote a more prosperous and equitable society.
Lamentablemente la falta de información genera caos y levanta al pueblo que ignora las cosas como son porque solo se llevan de falsas expectativas que hacen movilizar a la población en contra de sus autoridades cuando no saben cómo se genera las condiciones de mejoras económicas
Dariusz Prokopowicz -
It is interesting that in Poland you seem to indicate that the government may have misled people and that "...it is the media independent from the PIS government that play an important role in increasing economic awareness and knowledge." In the United States, the Federal Government, apart from the efforts of Donald Trump and his enablers, has been, and currently is the best source of credible information. However, there has been an odd movement towards anti-intellectualism/rejection of science and mistrust of government institutions which has come about in the US (and elsewhere I'm sure) perhaps largely because many have been convinced by unscrupulous politicians and others that they are victims of immigration and pluralism. Ignorance seems to have become a virtue for many. In answer to "What are the negative effects of the low level of economic knowledge in society?" I think that many in the US have become convinced that the US economy has been doing badly when it has made a remarkable recovery from COVID under the Biden Administration. Inflation was recently about 3% - except 7% in Florida where Gov DeSantis has discouraged migrant workers - and at the same time, unemployment has been very low. Yet people have been fearful. The touted recession has not come. You can say then, I think, that ignorance of the economy has been taken advantage of by a destructive movement bent on shaping public opinion in a negative way. People then end up voting against their own interests. True most live from pay check to pay check, but that occurred over at least a 50 year period. There is a huge inequality in income. But this information is available, and the Federal Government is a good source of reliable information. But there are bad actors trying to undermine that. The result of this unnecessary and willful ignorance in the US is a furtherance of deception which is politically dangerous.
Thank you for your question.
Jim
- Badges
- Science topic
- Similar topics
- Phytochemistry
- Extracts