Question

WHAT ARE THE 7 MAJOR ECONOMIC GOALS? 

 

ESSAY FORMAT MUST INCLUDE THREE PARTS:

 

1. AN INTRODUCTION

 

2. A BODY

 

3. A CONCLUSION

 

Answer 1

Introduction:

If you read reports about the state of the economy, you will also note that the article includes unemployment figures. An unemployment rate that is headed upward causes concern because one of the United States' economic goals is a low rate of unemployment, also described as full employment.

The broad goals viewed as central to the U.S. economy are stability, security, economic freedom, equality, economic growth, efficiency, and full employment.

1. Stability- When prices for goods and services increase dramatically, the value of money is decreased, and purchasing the same stuff costs more. This state of affairs is called inflation. The prices remain at the same point as inflation is kept low. Circumstances which are outside the control of the government will affect prices. A prolonged drought in the corn belt or an early freeze reaching Florida's orange crop causes shortages that lead to higher prices. Higher prices for some critical goods, such as oil, will generate inflationary prices across the economy.

2. Full employment- Absolute full employment is difficult to achieve; people either leave their jobs at any given time or are unable to work for a number of reasons. A rate of unemployment, the percentage of out-of-work labor force of 4 percent or less, is called full employment. The rate of unemployment varies from region to region and State to State. For example, California's rate in the early 1990s was higher than the national average due to cutbacks in the aerospace industry, and out-of-state companies.

3. Economic growth- Economic prosperity is calculated by the gross domestic product ( GDP), the dollar value of the overall American output of goods and services. A thriving economy may have a 4 per cent annual GDP growth rate; a depressed economy may expand at less than 1 per cent a year. Unemployment is high in a sluggish economy, productivity is poor and work is hard to find. Defined a recession as two consecutive quarters of negative GDP. In the 1970s, the US experienced an unusual mix of high unemployment and high inflation, known as stagflation.

4. Security- Stability is linked to another purpose, that of security. You have probably heard about the benefits of Social Security, which include money that older adults receive after a certain age. Such incentives are one way to prevent people above the average working age from living in severe poverty and those with disabilities.

5. Economic Freedom- Traditionally American people place a high importance on the right to make their own economic choices. Examples: We like to choose our own jobs, employers, and how we use our money. Business owners like to pick how and where they produce.

6. Economic Equality- Americans have a strong tradition of justice , fairness and impartiality.
Examples: we believe in fair pay for fair work- discrimination on the basis of age , sex, race , ethnicity, disability, etc., is unconstitutional. Minimum wage is another example-we assume that people have at least the right to a decent standard of living. Advertisers can not make false statements with respect to their goods

7. Economic Efficiency- Since resources are limited, development factors have to be wisely utilized!! Fewer goods can be produced if resources are wasted, and fewer want satisfied.

The federal government is implementing initiatives aimed at creating a stable economy that benefits all Americans not an simple mission. An economic policy which benefits one segment of society may be detrimental to another. Holding inflation under control by increasing interest rates makes it harder for businesses to get capital to grow and recruit additional workers; the unemployment rate could be rising. In contrast, low interest rates can lead to inflation as spending increases; many workers find their pay rises meaningless because prices rise.