Economics Vs Society

Economics is the study of how a society distributes its resources. As indicated by the fact that it is still studied, it is not yet a solved field. Were there an answer, regardless of the complexity of that answer, no one would study it aside from those who needed the details to keep this perfect system running. One of the major roadblocks to solving the problem of the distribution of resources is the efficiency versus equality trade-off. But before diving into the issue, there are some terms that need to be better understood. First, the definition of economics mentions a society. Contextually, society makes sense intuitively but that is not nearly rigorous enough for a scientific definition. For a definition to be applied to its best ability …show more content…
Technology has also improved the rate at which resources can be acquired. But, as with societies, while there is an instinctual understanding of what makes a resource, that definition is not academically rigorous. A resource is best defined as any ingredient used to make a product. Under this definition there is the obvious ones such as iron, oil, or lumber but the reason why a scientific definition is useful is that it also helps distinguish the obscure. Some of these obscure resources being time, energy, or information. These more outlandish resources, as can be seen, can be more than physical. But these resources are best applied with another qualifier. These resources, as they are in the real world, are scarce. This means, though in vast quantities they may be, there is a finite number of them at any given …show more content…
That is, they wish to increase efficiency as much as possible. But, ironically, the one standing in the way is the government itself. Those rights that the citizens fought for manifest in a guaranteed degree of equality in the workplace. In addition to what is mandated, there exists another reason to not go all the way to the line in drawn in the sand. If a company were to follow the letter of the law to a t, meaning they payed everyone the bare minimum and offered only what was strictly required, they may actually decrease efficiency as no one would accept more responsibility, or even accept the job, if the pay was only minimum wage.
As such, the maximum efficiency is one which has a degree of equality in it. This means that the balance is not as it first seems. Instead the balance is as it is seen in companies today. Pay increases at an almost exponential rate as responsibility increases. This is because a double in responsibility is only offset by more than double the pay in the eyes of most, leading to the most efficient outcome being a pay grade that increase at a high acceleration as responsibility