The Problem of Efficiency
The Problems of 'what to produce', how to produce' and 'forwhom to produce' lead us to the problem of efficiency. Since whom to produce' lead us to the problem of efficiency. Since resources are scarce, there should be efficiency in production. For the maximisation of walfare, distribution should be efficient.
Production is efficient when an alternative reallocation of resources cannot increase the production of any good even by one unit. cannot increase the production of any good even by one unit. Similiarly, distribution is efficient when a reallocation cannot make even person better off without making others worse off.The problem of Fuller Utilization of Resources
Another problem that every economy faces is the problem of fuller utilization of resources. Scarcity of resources is the basic problem. If scarce resources are not fully utilised, it aggravates the problem. Labour remaining unemployed, machinery lying idle and land kept unutilised are instances of under utilization of resources. During recessions and depressions, resources may remain unutilised or under utilised. Economic growth and development requires fuller utilization of resources.
The problem of growth of ResourcesWe have seen that resources are scarce. But that doesn't mean that they are constant or stagnant. Resources can be made to grow. it is possible to have more labour and more productive labour. Similarly, it is possible to increase the stock of capital and make capital more productive. Devoloped countries achieved economic devolopment by increasing their resources. In other words, they succeeded in achieving the growth of resources. Developing couuntries should aim at grown of resources, if they are to achiever economic development.
TO THOSE WHO ARE NOT AWARE:
ReplyDeleteMoney is so taken advantage of and abused.
What is the economy utilized for?
The economic system serves as a system where people who work get paid according to their work amount, efforts and difficulty.
Do employees actually get paid according to how much they work?
How can you own a business make millions of dollars and pay your employees the bare minimum salary?
Yes, owning a business is a lot of work, but so is having a labor job, however, to keep all the wealth to yourself is so unethical most people probably don't even enjoy their job and only do it to survive.
Yes, I do believe no man should profit without working and that is exactly what I am addressing, the top 1% and other wealthy businesses or industries or companies or organization's profit way more than they labor in other words, they don't pay their fare share and the effect it has on society and the individuals they employ are harmful.
And keep in mind the political influence these mega corporations have on society and who they employ is so horrific the gay pride agenda to name one.
Now weather you agree with the gay agenda is not the topic of this writing the topic is the economic and societal breakdown that is happening as a result of industrial powers.
Imagine a successful business where most of its income goes back directly to the business and the employers instead of going into the pockets of a greedy business owner.
The employees would probably be paid way more than they are now, maybe in some cases 50$ an hour for flipping burgers or something.
I am not against success I am against greed, many of our problems can be traced back to greed like immoral and dangerous GMOs and vaccination dangers and countless other problems.
I don't believe it is ethical for a person to live in a mansion and only have an occasional 3 hour meeting as their job.
Simply because you took advantage of the economic system doesn't make your life more special than the 8$ and our employees that are slaves paying for your personal pursuits of pleasure.
I recognize it is not illegal to make millions of dollars growing GMO crops, paying the farms 8$ an hour or something low like that or owning Mc Donalds and doing the same however it is profoundly unethical and destructive.
Unfortunately, money = power, including political influence, the more money you have, the more magnified your potential to do good or bad with the money and the influence it brings to you.
Not everyone in America has equal power and influence, those at the top can fund whatever they want be the cause good or bad it is up to them to decide what to fund.
Utilize what you have for the greater good, we can't hold you accountable for what you can't do, however we could for what you can do.
This world is far from being fair and just that doesn't mean we shouldn't try to make it fair and just I do not advocate for stealing from the rich to give to the poor that is communism, I urge that the greed and abuse stops.
I patronize local business I believe they are more environmentally and economically friendly the gap between the business owners and the employees profit is less extreme.
I believe in the do it yourself independence model, I believe as technology and academic knowledge increases, we should be wise enough to produce our own necessities like energy, to collect our own water if possible, to grow our own food, to liberate ourselves from the corporate and government dependency that is installed by design to retain the population under their dominance and influence.
The less we rely on finances to make a living the less we are slaves at the mercy of those who moderate the flow of money like the wealthy who employ us to name one.
We need regulations that protect the people from the corporations, not the corporations from the people and their interests.
We must also have good interests for this idea to work.