Learning economics is never easy, much less when you also see it in a language different than yours since there are many terms that you do not know because they are not part of your daily conversations. Anyway, I think it is something quite important and necessary for any business since we can not only be designers who do without knowing what our work costs or without understanding why we cost the companies to which we work an overhead that we never keep in mind, we just think that our bosses are making a lot of money without paying us just enough, but we don't realize many expenses behind a business or hiring an employee. But how are we going to sell our ideas well if, in the end, we do not know what they are worth or how to charge them?
This class made me understand many things, such as how the classic economic models in which the government owns the money, backed by gold, built works, which generates income for the people and then people spend the money. This also leads me to wonder how this model is broken by not having a circular economy within cities or countries, and much of this capital ends up leaking to other companies abroad, which in turn I think is slowly going bleeding the internal capital of the country.
Another interesting thing that I learned is the relationship between fixed and variable costs, and how in the end your profit depends on the variable costs rather than fixed costs since the fixed ones is something that you should always pay, but the variables It is something that you can reduce or increase according to your need for production, and that in turn if you stop producing, the fixed costs they will still have to be paid, while the variables are completely related to what you produce, so you should never sell your products below these variable costs because that will generate losses. And I also learned with this that users will look for an added value to a product, which is given by the transformation of a material through a process; So we have to take into account in this equation of cost of materials, direct labor (and value-added to the material) and the overhead of the operation, and how a product is not part of your revenue until it leaves your stock.
We saw some other things like Montages, Liabilities, PNL (Profits and Loss), EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), Financial Statements, Balance Sheets, Assets, Liability, Equity and much more. But another thing that I found interesting is the concept of how it's always better to get a loan for your investment than putting your own capital into it since you are not risking your wellness in the business.
In addition to the economy class, we also saw in the mornings a part of ICO (cryptocurrencies) and Blockchain that was quite interesting, although unfortunately quite short. Personally, this is a topic that has interested me a couple of years ago. But beyond understanding how mining works and some other related issues, the most interesting thing was to see some emerging projects that are already using this technology and how there are even places where you can invest in agricultural projects in the world through cryptocurrencies, or how you can use cryptocurrencies for something other than a simple exchange of values, or likewise blockchains to solve issues like fake news, or the origin of a food.
We also learned about how to create a crypto wallet with MetaMask, and to do some basic trading’s to ger JORDITOKENS, a token created by Jordi for the class, that work with the Ethereum blockchain. But anyway I feel we need a lot more time to talk about all what surrounds the ICO´s world nowadays. It would have been nice to really learn how to create our own crypto, to understand how to add value to it or relate it to a certain project we have. I feel that the learning was quite superficial, and that having more time to learn more thoroughly this topic would have been quite useful.
This week although dense, it was quite interesting, unfortunately, it is a very broad topic to see in just one week, and possibly more interesting, at least the economic part, see it later and more calmly to be able to relate it to a business. I think it would have been more interesting to learn to make a business plan or to get investors for your project.
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