Modern world of economics

I had an interesting seminar on migration today. We spoke about European trends, population aging and costs of it. We even discussed Slovakian case study, well a bit. But it is actually quite true that one of the problems of the aging is in social security. Every citizen of every state expects its government to provide certain level of social security including the period of your life when you can not do it yourself. Some systems are better, others are worse. For over a decade in my country there is a debate if an insurance can be substitute to pension. Some people opt for it, but again the problem is that you have to think about those things before it happens, so in case of aging - when you are still young.

In fact, it is amazing how important the whole insurance market became for most of us. From my birth my parents were worried about my insurance (even or especially in the old times!). Human beings are ready to pay every month a bit in order to ensure that in a trouble situation there is a way out. I think it was a brilliant idea to creat this market. Just look around: health insurance, house insurance, travel insurance, car insurance, courier insurance, commercial insurance after all. There is huge, just immense market. Every economist knows that demand is a driving force of any market economy, so it means that people need it. Why? It is easier, it helps, it brings money when you need it, it is secure and this is the only thing we have. As simple or complex as it is. After all, insurance have more advantages than disadvantages. There is no doubt that insurance is good as long as you can efford it:)

At the same time, I still find it a bit weird that most of the rational actions are driven by economic interest. Behind the politics are economic interests. All around, almost no exeptions. I know I have studied it in so many courses, but it still strikes.

P.S. This post is brought to you thanks to Autonetinsurance.