7 terms

2.2 - Identifying the 7 Social / Economic Goals of the U.S. Economy

Economic Freedom
Americans traditionally place a high value on the freedom to make their own economic decisions.
• Examples: We like to choose our own occupations, employers, and how we use our money. Business owners like to choose how where and how they produce.
Economic Equality
Americans have a strong tradition of justice, impartiality, and fairness.
• Examples: we believe in equal pay for equal work- it is illegal to discriminate on the basis of age, sex, race, religion, disability, etc. Minimum wage is another example - we feel people are entitled to at least a basic standard of living. Advertisers can't make false claims about their products
Economic Security
Americans desire protection from bad economic events - layoffs, illness, recessions.
• Examples: Unemployment Insurance available to people who lose jobs (no fault of their own), Workers Compensation plans, Social Security... all help protect people when bad things happen!
Price Stability
People want to keep prices stable and limit inflation because with high inflation, people are forced to pay more for food, clothing, supplies, etc. This is especially harmful to people on a fixed income. Sometimes high inflation can also discourage business activity - just becomes too costly
• Example: FED (govt. bank) keeps interest rates low to help control inflation
Economic Efficiency
Because resources are scarce, the factors of production must be used wisely!! If resources are wasted fewer goods can be produced, and fewer wants satisfied.
Economic Growth
Americans expect the "American Dream" - they hope to have a better job, newer car, own home, and other things that represent success in life. When you have economic growth, it enables people to have more goods and services
Full Employment
When people work, they earn income and can support themselves and their families. This goal is very important to most people!!
• Example: Congress once passed an "Employment Act of 1946" to avoid widespread joblessness. During the Great Depression, the New Deal created programs like the CCC that made jobs for people.