SOCIAL ECONOMY STATE POLITICAL GUARANTEE

This has not worked well for the country and has even led to the waning popularity of the leader (Taylor, 15). The lack of consensus on important matters such as how to handle a recession put into question the ability of the government or its stakeholders to solve some of society’s problems through economic intervention. Some people argue that efficient management of the economy is critical to existence of a good society. However, this kind of management can be done on a micro level and on a macro level. The macro level leans towards government intervention while the micro level leans towards free market economics. Since resources are scarce, a good knowledge of how the economy works allows for optimization of these resources and hence enjoyment of efficiency. Good societies should therefore be those ones that use fewer resources or waste even less; issues that can best be implemented on a micro level. Furthermore, citizens that manage their economies well will allocate their budgets more efficiently especially as a result of the opportunity cost principle and this will lead to better growth (Financial web, 22). This principle refers to the benefits that have to be foregone by a decision maker when shifting from one opportunity to another one that may be better. To understand the argument, consider a person who had a certain amount of money in the bank, choosing to take this money from the bank into the stock exchange would mean that the person will forego interests in the said bank but will be looking forward to the benefits of owning stock. The opportunity cost would therefore be represented by that decision to change investments. A good society is often run in the same manner. Policy makers cannot always keep recognizing the opportunities that are likely to benefit their citizens so personal initiative by the said members should be advocated. It should be noted that although consumption leads to economic growth, this can only occur when the right choices are made on what to buy and what to save by market players. A well functioning society should be one that produces results for its inputs. In other words, if a society injects certain amounts of cash into the economy then the expected outcomes should be profitable. Once no change is recorded or a negative one arises then such societies will start degrading. Issues such as unemployment and higher poverty rates are common in societies that reported no economic gains. One can therefore say that prosperity is highly determined by a stakeholder’s ability to plan for these gains. Failure to do so may create a breeding ground for a number of social evils.