Answer to Question #263926 in Economics for Nalyn

Question

Why are economic goals important to the economy?

Answer 1

The effectiveness of any complex system largely depends on understanding the essence of this system and its true goals. This applies primarily to modern economics, since the interpretation of the essence of the economy and its goals are distorted to such an extent that a person, the main actor in economic relations, is left out of the economic system, and the goal of the economy in the real economic space is often reduced only to making a profit and accumulating benefits. In turn, a misunderstanding of the goals of the system leads to the fact that the system is deformed. And in order to build a healthy economy aimed at serving the interests of an individual and society as a whole, you need to correctly build a system of economic goals.

Actually, the economic goal of the economy is related to its efficiency. The economic goal is to ensure the coverage of costs (as a minimum condition for the existence of the economic system), to obtain sufficient profit for sustainable development, to ensure the financial stability of the economic system.

Since the economy is not self-sufficient, both in its essence and in the purposes of its existence, it is created by a person for a person, for society, therefore, it must at least realize its basic goal, be humane, social, ecological, effective.