Introduction
Every countries dream is to have an ideal economy but what it is, is not well outlined. In this essay, I shall be discussing this ideal economy, its features, and what is expected from this ideal economy by different stakeholders. For an economy to be ideal the gross domestic product of the country should have an increasing trend. They are various factors that constitute the gross production are government expenditure, rate of consumption, investment, and net export among others. For a country to have an ideal economy it should consider different factors that contribute to growth in the economy.
Contributions
For an ideal economy to be there should be some contributions made to the economy this include the contribution made by the citizen to the economy. The people should ensure that they are working to earn a living. Though working one will be paid according to his contributions, therefore for an economy to be ideal the government need to create more employment opportunities for the people especially those who are in the lower class in terms of income. An increase in the level of employment in the country always leads to an increase in the level of the gross domestic production hence increasing the level of net production.
Economic growth
As stated earlier for the economy to be ideal the growth is very necessary. This growth can be achieved by increasing the net export and reducing the importation of goods and services. A government can do so by encouraging industrialization in their country, this will increase domestic production as well as increase the level of employment. Export brings in foreign income to the economy this contributes to the growth of the economy. Inflation contributes negatively to the economy and therefore needs to be eliminated.
Political situation
The government of a particular country needs to be efficient in its dealing. According to Peter (2000), a government is very important in any economy this is because it provides a stable political situation. Investment can only take place when there is stability in the politics of the economy. People are also willing to work when they know they have enough security and some laws protect their various interests. The government is needed to control public goods and various expenditures. The government also is needed to provide a good environment for various sectors that help in the economy like banks and other forms of trade.
Inflation
There is a need to maintain the inflation low. Economics has defined inflation as the persistent increase in price in the economy. This increases the cost of living of individuals in this economy. It also discourages investment by both the domestic and foreign investors in the economy
Conclusion
In conclusion for an economy to be considered ideal, the managers of that economy need to the political environment. Every country has an independent policy on how to ensure growth in the economy. Although these policies are different there goal is the same to have an ideal economy. The effort made by the government and citizens is what will lead to the ideal economy everyone wishes for. Imagine a country with no problems like unemployment, political instability, or high inflation? This is what I would consider an ideal economy according to my view. This indicates that the governments are the managers of the economy and therefore they contribute a lot in ensuring an ideal economy. This can be achieved by using quality policies in the management of the economy.
Reference
Peter, P. (2000). Introducing Keynesian Economists. Washington: Totem books publishers.