Economic concepts and systems

Economics simply relates to the management of the household. In an economy, however, there are many things which cannot be produced owing to scarce resources. This is the reason why out of the six social goals, economic stability is the most important.

Economic Stability is the promotion by the government of conditions that will contribute to a sustainable development or a balance in the fulfillment of human needs with the protection of the natural environment so that these needs can be met not only in the present, but in the indefinite future. It deals with economic development with minimal environmental degradation, or equitable development that is environmentally sound.

The goal for an economic stability gives emphasis on the need for environment management, control and ownership of the natural resources because these resources including everything deriving from land and water such as trees and its by-products, minerals and water resources such as fishes, pearls and corals, are the ones used by the people to satisfy their needs, as well as their wants. The government, in its efforts to promote economic stability, issues rules and regulations for the protection and preservation of the environment such as providing for limits on the poisonous chemicals released by industries which are harmful to the environment and imposing fines on those who exceed such limits. This way, the government can control the release of the chemicals from different industries in order to protect the environment without preventing the industries from producing their products. Another is the limited areas provided by the government where the natural resources can be utilized. People can only use the resources in such areas, therefore, abuse in the use of the natural resources is prevented. The need for the preservation of these resources is because of the fact that it is finite or limited. Abused utilization of these resources will deplete it and will eventually endanger the future inhabitants of the earth, leaving them nothing for the production of their own needs. Without the resources, there will be nothing to work on in the first place. Achievement of economic stability is the first step in order to achieve the other social goals. Since there are resources, there can be economic efficiency whereby goods can be produced at a lowest possible cost because of the availability of resources. Economic freedom or the right of a man to engage in voluntary economic activities, economic equity or justice particularly in terms of taxation and welfare economics, and economic security or security in employment can be settled between the government and the people in order to achieve them. All the other goals having been achieved, economic growth will follow whereby there will be increase in the value of the goods and services produced by an economy.