Economics is concerned with managing finances to meet human needs. Economics subjects are taught starting in grade 9 of junior high school and high school.
Economics goes to social studies for college test preparation. Economics includes science that examines market finances starting from exchange rates, interest rates, international trade, to government policies.
The following is the definition of economics and the creative economy according to experts.
What is Economics
The term economics comes from the Greek word oikonomia which consists of two words ‘oikos ‘ meaning household. While nomos means rules. When combined, economics means household and regulations. It can be concluded that the meaning of economics is the science that studies how to fulfill human needs through resources.
Human needs are increasing and unlimited. The existence of economics helps humans to meet their needs through goods and services. Studying economics helps in decision making, providing an understanding of the potential and limitations of the economic policies taken.
The following is the definition of economics according to economists.
1. Alfred Marshall
Economics is the study of the investigation of social and individual activities, in relation to the ability to use material needs.
2. John Stuart Mill
Economics is knowledge about how to produce and distribute wealth.
3. JR Hicks
Economics is a science that studies human behavior in the world of trade.
4. PA Samuelson
Economics is the study of individuals in society in making choices, or without using money, and limited resources. Then these resources are converted to produce goods and services for consumption needs for society.
5. HJ Davenport
Based on the book “Economics of Enterprise”, HJ Davenport explains economics as knowledge that controls various problems from the starting point of prices. Economics is a tool for studying how production levels can be increased so that people’s lives can also improve.
6. John Stuart Mill
John Stuart Mill explains that economics studies the various intricacies of billing and spending. Apart from that, economics also discusses production activities and distribution of wealth.
Mankiw believes that economics studies how individuals interact with each other. Apart from that, economics can improve understanding, potential and economic policies.
Understanding the Creative Economy
The term creative economy emerged after the development of economics and technology. In Indonesia, the creative economy emerged in 2006, when the Ministry of Trade held the Indonesia Design Power program. The aim of this program focuses on expanding fields and services that can provide opportunities for creative actors and industries in Indonesia.
The definition of a creative economy is an economic aspect that relies on ideas, understanding and perceptions of human creativity. The creative economy includes production activities, distribution of goods and services, which require creative ideas, concepts and intellectual abilities. The creative economy flow emerged in the 21st century which focuses on intellectual value to create money.
Understanding the Creative Economy According to Experts
1. John Howkins
The creative economy is an aspect of growing the economy through the creative potential possessed by every human being.
2. Ministry of Trade of the Republic of Indonesia
The creative economy is an industry based on creative ideas, skills and talents controlled by individuals. The aim is to be able to create peace and at the same time create employment opportunities through mastered creativity.
3. Department of Culture, Media and Sport (DCMC)
The creative economy is a creative industry that originates from individual creativity, skills and talents to open up employment opportunities. Utilization through intellectual property and content.
4. United Nations Conference on Trade and Development (UNCTAD)
The creative economy is a developing economic concept, based on creative assets to generate economic growth and development.
5. Institute for Development Economy and Finance
The creative economy is a way to add more value, originating from wealth and intellectual property. Sources of changing value include each person’s creativity, talent and ability to produce products that can be bought and sold.
6. United Nations Conference on Trade and Development
The creative economy is the idea of growing from creative potential to build economic progress and continuity.
Characteristics of the Creative Economy
Based on the definition above, the creative economy requires creativity and intellect for the production process. So the prominent characteristics of the creative economy include:
1. Easy to Replace
Creativity and innovation can be developed to create the latest products that contribute to the growth of the economy. So that it can be welcomed by the market share, considering that the product can be easily imitated and quickly replaced.
2. Intellectual Creation
There are various factors that influence the production process. For example, creativity and skill for the potential selling value of goods and services.
3. Field and Indirect Provision
Products obtained from companies can be bought and sold without intermediaries with consumers. Or products can be bought and sold through intermediaries.
4. Based on Ideas
The creative economy creates the latest products based on ideas and ideas, in line with current developments.
It is hoped that creative product creations will be accepted by the market. On the other hand, products can be useful for a long period of time and are not limited to certain groups.
6. Requires Cooperation
The creative industry must pay attention to cooperation from other parties. For example, entrepreneurs and the government as regulators to expand the production development network.