Encio, Alowena P. November 15, 2024 BSA- 2 ACCTG237- Economic Development 1. What are the key take aways of VIDEO 1, based on your own understanding? (5 points) The cost of living crisis shows how important it is to understand money, as budgeting and saving become crucial during tough economic times. It highlights the need for emergency funds to handle unexpected costs and rising prices. The crisis also teaches the value of being resourceful, as people find new ways to save money, like carpooling or using community resources. Additionally, it shows how important government policies are in dealing with inflation, providing safety nets, and making sure essential goods and services are affordable. The cost of living crisis reveals the need to prioritize needs over wants and adopt a simpler approach to spending. It highlights the struggles of those living paycheck-to-paycheck and the growing gap between income and essential expenses. The crisis demonstrates the importance of long-term planning and having multiple sources of income to reduce financial risks. It also draws attention to the need for affordable housing, healthcare, and education, which become even more difficult to afford during such times. Furthermore, it stresses the value of community support systems and the role of collective advocacy in pushing for fair wages and better social welfare programs. 2. What are the salient points of VIDEO 2, based on your own understanding? (5 points) The cost of living crisis happens because prices are going up, but many people's incomes stay the same or grow very slowly. Problems like wars, pandemics, and delays in getting goods make things like food and fuel harder to find and more expensive. Energy prices have gone up due to global conflicts and a slow move to cheaper, sustainable energy. At the same time, wages are not rising as fast as prices, so many people can't afford basic needs. The lack of affordable housing makes rent and buying homes too costly for many families. There is also more demand for essentials like healthcare and education, which adds more pressure. Sometimes, governments struggle to provide enough support or policies to help people cope with the crisis. Climate change also makes things worse by disrupting farming and increasing food prices. All these issues together make life tougher for lower- and middle-income families. Additionally, high childcare costs and expensive public transport add to the financial strain. Many people also face rising debt, making it even harder to manage their finances.
