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  • Writer's pictureJose Arrieta

Households and Entrepreneurs

Updated: Mar 19, 2022

Households form the atoms of macroeconomics. Entrepreneurs play the same fundamental role for microeconomics. They form the standards of how we measure economic life.

Neither particle is elemental. Look deeply into a household and you will find a collection of persons. Most household contain more than a couple but less than a baker dozen of members. each member has its own unique role, goals, quirks, and worldviews. These provides us the top and bottom of our society with a kind of charm and strangeness that helps us see up and down.

Break a part the false facade of na Entrepreneur and you will find an organization of hundreds or even hundreds of thousands of individual workers all contributing to the entrepreneurial pursuit. Entrepreneurs have a kind of charge. Some moan and topple, and linger in their path. Some are too fast for us to see, neutral to our memories. A few stay around for long and make our world as we know it.

Here in the depths of the firm lies the connection between the atoms or macro and micro economics. Each worker is itself a member of a household. True. Some household lack workers but most have at least one.

As workers form households the dynamics of supply and demand pull and push making for complex market dynamics. The savings and consumptions of households drive bull and bear markets, growth and decline. These interactions are the glue that binds our lives, the color that spices our experiences, they make our rainbows, and provide our households and Entrepreneurs with their distinctive weights and biases.

As households change so do organizations. In an eternal yin and yang of economical, societal, and eternal change.

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