Evaluating Economic Performance Did you know that the nation’s first minimum wage, set in 1938 thanks to the Fair Labor Standards Act was $.25 an hour?

American Economic and Social Goals Economic freedom-the freedom to make your own decisions Economic efficiency-resources are used wisely Economic equity-many people support laws against wage and job discrimination

American Economic and Social Goals Economic security- programs to help support the ill, elderly, and workers who have lost their jobs

American Economic and Social Goals Price stability-freedom from inflation INFLATION-a rise in the general level of prices of goods and services in an economy over a period of time. Very important for people on limited or fixed incomes

American Economic and Social Goals Economic Growth- important, because populations tend to increase and existing populations tend to want more goods and services

Trade-offs Among Goals When goals are at odds with each other, people must compare costs to benefits before resolving the conflict Often these conflicts are worked out naturally by the market The flexibility of the American economic system easily allows choice and compromise to work out the issues

Discussion Question The idea of minimum wage supports the goal of economic equity. With which goals does the idea of minimum wage conflict?