Goals • Here are the six economic goals: • Economic Freedom • Economic Equity • Economic Efficiency • Economic Security • Economic Stability • Economic Growth
Freedom • This goal is about the amount of choice people have in where they work and live, the type of career they have, what they do with their income and what they buy or sell. Economic freedom is restricted in some cases to protect the rights of others, for example there are laws prohibiting the production, sale and purchase of illegal drugs.
Equity • This goal centers on fairness. People's beliefs around what is right or wrong determine how this goal is achieved. • Issues that involve Economic Equity certainly deal with redistribution of income.
Efficiency • An economic principle holding that businesses and individuals should fulfill as many of society’s needs as possible while maximizing the provided resources. • When a society achieves economic efficiency, goods and services are produced without a lot of waste and those goods and services are what the consumers want and or need the most.
Security • Keeping people safe from economic risk is the basis of this goal. United States Government programs such as welfare, Social Security and food stamps are all examples of ways America tries to achieve this goal. Producers and consumers desire to be protected from risks over which they have little or no control such as illness, bank failures and man-made or natural disasters.
Stability • This goal involves three aspects: sustained growth without large swings in output or consumption; stable rate of employment; and a stable level of prices without dramatic inflation or deflation. Most nations with economic freedom allow for some unemployment and inflation.
Growth • Economic growth is the sustained increase in the production of goods and services. It is measured by Gross Domestic Product (the total value of all final goods and services produced in a nation in a year). A nation's standard of living can only improve if GDP increases. To achieve economic growth a country must invest in education, technology and capital goods. This goal is closely related to a country's long term ability to use resources to achieve the other goals.