October 24, 2016

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Sound economic policies contribute to stability

Economy is the relationship among trade, production and money supply in a particular region or country. In this sense, economy is mainly concerned with those who are engaged in commerce, manufacturing and financial businesses. Growth of these sectors is generally considered to be economic growth. It is also generally accepted that economy is stagnant when activities in such sectors slow down. As a result, investment in such sectors are encouraged when governments want to revive their economies. So investors seem to be important for an economy to grow. This can be termed as the problem of the rich. However, their problems can also affect the entire population or lives of poor millions.
On the other hand, economic problems are mainly concerned with the general public. When an economy slows down, people have to deal with unemployment, inflation, poverty and many other problems. Some people think these are social problems that can be solved when the economy is vibrant. More often this is not the case, because economic growth is not equally distributed among the population. So, while this can be termed as the problem of the poor, it can also lead to economic crises for the rich.
A stable economy should be able to address both issues. Although some economies place an emphasis on the problem of the wealthy while others prioritise the problem of the indigent, it can be seen that the best way to manage an economy is to find a way for prosperity for all and equally distribute wealth among the entire population so that the majority is satisfied with economic policies. That is why the union government recently urged the business community to work in the interest of the country and the people while guaranteeing their legal right to do business. Sound economic policies must be able to strike a balance between the interest of the rich and the poor.

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