![]() Spending his earnings, planning and thinking week to week. The weekly wage worker would be one zoom level out from the bum. ![]() His life would probably also be confined to a small geographic area, a street corner with a nearby bridge and liquor shop. Daily or hourly, “How do I get $1 in order to buy something to eat tonight?”. Now let us move the lens to everyday life.Ī bum would think very short term. Similarly, on the time zoom scale there is a line somewhere and if you are under the line you are “trading”, above the line you are “investing”. Zooming in further than the line would be considered “Micro” and zooming out above the line would be considered “Macro”. Somewhere in between all these zoom levels of space and time, at some stage, some economist decided that he or she will draw a line. Five, ten or twenty years into the future. You could zoom out further and think very long term. ![]() You could choose to zoom out further and take a yearly or 3 year view and make your decisions based on this. You could look at 10min trading candles and choose to make investment or trading decisions based on the data 30min, 1hour, daily, weekly, monthly price movements etc. The final zoom level would look at economic affairs on a global level population growth, global technological trends, infrastructure, GDP and such. One level above that, you could look at geographical aspects such as countries that are involved, general market trends, inflation, interest rates etc. One can zoom out one level, move the scope around and look at the industry the company operates in, regulatory effects, competitors etc. On this same zoom level, you can move the telescope around and have a look at the company employees(one might even analyse a single employee for aspects such as education or character traits), assets, structures and a range of other variables. One can zoom in further and look inside said company at their balance sheet or income statement, then one can zoom in even further and analyse each item on those statements. One can “zoom in” and look at say, a single company. I like to think of this topic as if one is looking at the economic world through a telescope with different size zoom lenses. The Austrian school points out that there should not be such a distinction because all of economics is made up of daily actions and decisions by individuals. The distinction is often made between macro and micro economics.
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