Manon's Econ Blog

Broad Social Goals

Posted on: September 15, 2009

We searched on two articles what were the broad social goals that economies should aim for.

These goals are:

  • economic efficiency
  • economic equity
  • economic freedom
  • economic growth
  • economic security
  • economic stability

We realized that no economy can have all of them at the same time, because too much of one can limit another; for example if there is too much freedom, then the stability is limited.

Market economies are doing better for mosst of the goals (efficiency, equity, freedom and growth) but command economies are better at security and stability (since the government decides everything, it makes sure that there is no unemployement and that everyone has pension, jobs, income…

Stability is the most important but also the hardest one to achieve. Maintaining stable prices and full employment while keeping the economic growth reasonably smooth and steady is really complicated.

I think all economies should aim toward freedom. It is important to be able to make your own choices. We realized in history that stopping people from having their own ideas does not do much good.  If workers want to change job, they should be able to do it and no one should stop them.

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