Is there such a thing as a perfect economy? How close is the UK to this ideal Firstly, what makes perfect? How can we define the word ‘perfect’? In the dictionary, the definition of perfect is having all the required or desirable elements, qualities, or characteristics; as good as it is possible to be, however I would disagree with this. I think perfection is different to each being, it only exists in our mind and only we can define our version of ‘perfect’ e.g. I think a certain building is perfect because of what I see in it, conversely others won’t.
Now what is an economy? An economy is a system which tries to balance the available resources of a country (land, labour, capital and enterprise) against the wants and needs of consumers. So it tries to meet all the needs in order to run in the most effect way. It relies on many different factors such as the amount of people in the certain country, and the wealth of the people in the country. In order for a country to have a better economy in my opinion, market reform needs to happen. Market reform brings competition, lowers inflation and increases the product efficiency. Businesses will start to compete thus prices will become cheaper and more strain on the businesses means more jobs will be created.
However, for a good economy to be in place, a country cannot rely on one product. Taking Algeria for an example, the country is based around oil. Algeria has the tenth-largest reserves of oil in the world with 12 billion barrels but the hydrocarbons sector is the backbone of the Algerian economy. If the market dipped, Algeria would be struggling and relying on other countries to help. For it to turn this around, Algeria would need a variety of products which are either unique or high in demand, which makes the product desirable and continually purchased.
Taking all this into account, is there such a thing as a perfect economy at this moment? In my opinion, there isn’t a single country in the world with a ‘perfect’ economy. For a country to be perfect in my view it would need to have a vast range of products both unique and in demand, it would need a tax system (equally distributed according to ability, so those of higher calibre such as doctors should pay more tax then others.) It would need freedom of enterprise and freedom of choice, as well as limited government. Take a look at the Switzerland for example, they have these last 3 qualities and this is a huge reason why there economy is the best in the world. If they were to push competition for businesses it could effectively be close to ‘perfect’.
I personally don’t think their ever will be a perfect economy, as relating back to the definition of perfect, it would be a matter of viewpoint, so although I might define the Switzerland’s economy as close to perfect, others wouldn’t. How can one economy make everyone happy? Is it possible?
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