Economic equity is another economic and social goal in a market economy. Many people would agree that equal work should get equal pay. Legally, discrimination against gender, race, religion, or disability in employment is not permitted. The gender and race gap is still an issue today and economists continue to analyze the reasons and work on strategies to overcome discrimination in employment.
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Economic Security
Security is a basic human need. Therefore Economic security is also a crucial economic and social goal. People would like to have security if something happens and the ability to make new decisions. Protection against layoffs and illnesses is the main economic security policy of the economy. If something happens at work and some workers get injured, the employer should cover the costs for their workers, and this right is protected by the law.
Full Employment
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Another economic and social goal in a market economy is full employment. According to the full employment goal, individuals that are able and willing to work should be able to find jobs.
Having a job is crucial for individuals since for most people it is the only way to earn money and provide a living for themselves and their relatives. To be able to consume, pay the rent and buy groceries, we all need to earn money. However, sometimes, especially during uncertain economic crises, unemployment issues rise. If the unemployment rate keeps rising, it will lead to a significant economic issue. Therefore, people want the economic system to provide enough jobs and full employment for the nation.
Price Stability
Price stability is another major economic goal. To have an efficient economic system policymakers try to have stable economic figures and protect the level of prices. Inflation plays an important role here. If prices rise too much, individuals would require more money for their daily needs and people with fixed incomes start to experience financial hardship.
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Inflation is not only negative for individuals but for firms and governments as well. Under unstable conditions and with no price stability, firms and governments will have a hard time planning their budgets and investments and might be discouraged to start new business activities or major projects that would create new jobs or better public goods. Therefore, stable conditions in the economy are desired for economic growth for all market players.
Economic Growth
The last goal is economic growth. We all want to have a better job, better houses or cars. The list of things we want never ends despite what we already have. Economic growth plays a key role here to enable economies to develop and produce more jobs, higher quality products, and higher living standards.
We should also take into account that population has a rising trend for most of the world. To have economic growth, the growth in economic measures should be larger than population growth to improve living standards.
Importance of Economic Goals
The economic goals we covered above are of vital importance for the economy and society. They are like guides for us when we have to make a decision. Think about the reason why you are studying now. You want to have a good grade or learn a new concept maybe. Whichever it is, you have some goals that you want to achieve and you plan your work according to your goals. Similarly, policymakers plan their economic programs according to these main goals.
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