BALANCED ECONOMY Meaning and
Definition
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A balanced economy refers to a state where the factors of production, such as labor, capital, and natural resources, are optimally allocated and utilized to achieve stable and sustainable economic growth. In a balanced economy, there is an equilibrium between the various sectors including agriculture, industry, and services, resulting in a well-rounded and diversified economic structure.
One key characteristic of a balanced economy is the absence of heavy reliance on a single industry or sector. Instead, it promotes a level playing field for all sectors, reducing the vulnerability to economic shocks caused by fluctuations in a specific sector. This diversification enhances resilience and stability within the economy.
Additionally, a balanced economy is capable of providing opportunities and generating wealth for its citizens. It ensures a fair distribution of income between various income groups, avoiding extreme wealth disparities. This helps to create a sense of social cohesion, reducing poverty levels and ensuring a higher standard of living overall.
Furthermore, a balanced economy focuses on sustainable economic growth, taking into consideration social and environmental factors. It recognizes the importance of preserving natural resources, promoting clean and renewable energy, and reducing negative impacts on the environment. This approach ensures the long-term viability of the economy, protecting it from potential environmental crises and promoting a more sustainable future.
In summary, a balanced economy refers to a well-diversified and resilient economic system that effectively allocates resources, promotes social cohesion, and ensures sustainable growth for the benefit of its citizens and the environment.
Etymology of BALANCED ECONOMY
The word "balanced economy" is a phrase composed of two words: "balanced" and "economy".
1. Balanced: The word "balanced" originates from the Old French word "balancer", which means "to balance". It refers to the state of being in equilibrium or a condition where different elements are equally proportioned or distributed. The term "balance" has Latin roots from the word "bilanx", comprising "bi" (meaning "two") and "lanx" (meaning "scale" or "dish"). Therefore, "balanced" implies a harmonious and equitable arrangement.
2. Economy: The term "economy" comes from the Greek word "oikonomia", which is a combination of "oikos" (meaning "household") and "nomos" (meaning "management" or "distribution"). Originally, it referred to the management of a household or the management of resources.
