National Economic Development Goals and Objectives: 1.

Full employment – Every year, at least half-a-million college graduates, besides the unschooled who decide
to work, are formally joining the country’s labor force. There must, therefore, be new employment opportunities created for them so that unemployment would not soar to alarming proportions. The labor force is composed of the fully employed, underemployed, and unemployed. The fully employed are those whose qualifications fit into their jobs, work full-time and are compensated as prescribed by law. The underemployed are those whose qualifications are greater than what is required by their jobs. Since they are compensated in accordance with their jobs and not with their greater qualifications, they are therefore said to be underpaid. The unemployed are those who are actively looking for jobs, but find none. Dependents are those who do not bother to find jobs. Because of population explosion, job search has become a long-term problem, not anymore a short-term one. The challenge to today’s graduates is not anymore to apply for jobs but to create these because modern information and communication technology has enabled them to make full use of their vigor, dynamism, and creativity as young people of today’s generation.

2. Full production – If left unchecked, population tends to multiply geometrically (1, 2, 4, 8, 16,etc.) while
resources can only grow arithmetically (1, 2, 3, 4, 5,etc.) within a certain period of time, as postulated by Thomas Robert Malthus, hence, production of goods and services has to be maximized to cope with population explosion. This should especially happen in the Philippines which ranks around 17th in the world in terms of population size but runs almost 7th in population growth rate. Land, labor, capital and entrepreneur should be fully utilized in the production of goods and services to support the increasing needs and wants of the people.

3. Price stability – Because of scarcity, countries in the world are forced to buy from other countries the goods and
services that they lack. They cannot afford not to do this, even if prices soar, because the more that their economies will suffer if they won’t. Price increases are, therefore, a reality that everybody has to bear. Price stability as an economic goal has to accept the reality that prices increase, but the increase has to be within the reasonable reach of the average consumer.

4. Rapid economic growth – Economic growth (wage and salary increases, etc.) is not good enough because it
may be beaten by a higher inflation rate and the increasing expenditures in the family. It must be “rapid” in that it should outpace inflation and rising family expenses. When this happens, families may be able to save and/or establish other sources of income, paving the way for the attainment of economic development (healthier citizenry, longer lifespan, more peaceful and stable communities, more available goods and services, higher standard of living). There can be economic growth without economic development, but there cannot be economic development without economic growth.

5. Equitable distribution of income – From each according to one’s capacity, to each according to one’s needs.
This is the principle of equity in economics. Resources must be distributed equitably, not equally, because we have different and varying contributions to society. Some contribute more, others less, and there are those who even do more harm than good to society. Those who contribute to society’s welfare should be rewarded while those who do harm must be punished, like what is done to criminals. Difficult jobs, not the easy ones, should be compensated more. Ironically, sometimes the opposite happens, hence, it should be corrected.

6. Economic freedom – This is the right of every individual to engage in an economic activity of his/her own
choice, whether good or evil, one which he/she believes can give him/her his/her desired income. Since it is one’s choice, one should be responsible whatever its consequences may be. If one chooses an economic activity which is good and in accordance with law, one dignifies himself/herself as a human being. If one, knowing what is good and evil, resorts to an activity in violation of law, one is liable for its consequences. Whatever our family’s economic status is, it is the result of how past generations in our family exercised their economic freedom. How we will exercise our economic freedom today will also determine the economic status of the family we will establish in the future. We must, therefore, exercise our economic freedom responsibly.

7. Economic efficiency – The factors of production in society must be used in such a way that production is
maximized and production cost or waste is minimized if not totally eradicated.

8. Economic security - We will not stay young, strong and healthy forever. Someday we will grow old, weak,
and sickly. One who is gainfully employed today might find himself jobless tomorrow. A very healthy person could meet an accident that will paralyze him/her. The untimely death of a breadwinner will certainly bring untold economic problems to a family unprepared for such a tragedy. We should, therefore, save resources because the future is uncertain.

9. Favorable balance of trade – International trade happens when we export goods and services to other countries,
while we import from them. To be favorable to a country, the value of its exports should outweigh the value of its imports within a certain period. This results to a surplus situation. It is unfavorable when the opposite happens. There is a deficit when the value of imports outweighs the value of exports. Because of scarcity of resources, a country cannot avoid buying goods and services from other countries. A country buys from another country goods which it needs but it cannot produce due to scarcity of resources. A country may also buy from another country goods which would cost less when imported than when produced locally. Balance of trade involves goods primarily while balance of payments involves both goods and services.

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