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Economic Goals
Economic Freedom
– …with limitations
– Too much freedom = unsafe food, discrimination in
hiring, and legal drugs and prostitution
Economic Efficiency
– Recycle, Reuse, Reduce
– Efficient use of resources  More resources available
for production and enjoyment  Lower prices
Economic Equity (fairness)
– Equal pay for equal work
– Equal playing field
– No false advertisement (truth in advertising)
Economic Security
– Pure market economy disadvantage
– Mixed market provides safety net
– Protection for the unproductive who are not at
fault
– Social Security, Medicare, Workers Comp.
Full Employment
– High unemployment = wasted resources
– Around 5% unemployment = full employment
Price Stability
– Fluctuating prices  economic insecurity
– Inflation: general rise in prices
– Inflation hurts those on fixed incomes most
– Inflation  higher interest rates (the price of
borrowing money from banks),  less
borrowing,  less spending,  slows the
economy (recession)
Economic Growth
– We want to be better off at 40 and 50 than 20
and 30
– Required due to population growth
Trade-offs Necessary
– Some goals mutually conflict
– Can’t have full economic freedom and full
economic security or equity