Economic Goals and Societal Values Economic Goals o

Economic Goals and Societal Values

Economic Goals o Economic Efficiency n Maximize production with the available resources. n Avoiding overproduction n “Right goods in the right quantity to the right people at the right price” (pg 25). o Economic Growth n Must grow to keep up with population n Increase standard of living n Innovation and increases in productivity and efficiency

Economic Goals o Economic Stability n n Stable prices Decreased frequency of “shocks” p Avoid big booms and dramatic crashes o Should Full-Employment be a goal? n n Reasons in favor? Reasons against?

Societal Values o Economic Freedom n Work where we want doing the type of work we choose n Buy what we can afford n Own our own property n To start own business o Economic Security n People want to feel secure: p Food at the store p Paycheck on payday p Safety net in case p Future employment

Societal Values o Economic Equity n n n What is fair? How do we divide the “economic pie”? Should everyone get the same share of goods or services produced? Should this depend on how much one produces? What about those who are unable or unwilling? How do we fairly distribute the fruits of our collective labor?

Summary and Discussion o Goals n Efficiency, growth, stability o Values n Freedom, security, equity 1. Which of the above seems most important? Why?