What is one way that economics effects your daily life

The principles of supply and demand play out everyday for every person making purchasing decisions on goods and services, and in keeping or finding a job. Changes in circumstances or government mandates on any aspect of an industry creates a ripple effect of price changes through multiple industries to the end consumer. CNN Money reports that consumer spending fuels two-thirds of the United States economic activity, much of which was based on credit prior to 2008. The 2008 to 2009 financial collapse led banks to tighten consumer lending, and consumers began paying down debt rather then spending as usual. Reducing personal debt is good on the individual level, but this reaction also kept employment in a slump and reduced the disposable income of households and individuals.