Why Is Business Important to Society?
Business, which one could refer to as economics, is important to society because it fundamentally deals with the allocation of resources throughout the world. These resources always suffer from scarcity, in that there will always be a higher demand for resources than there will actually be available.
Economics decides what resources are made available, how they are produced and who gets them. Business exists because the functioning of a robust economy is essential to the goal of allocating resources properly. Businesses are often key players in preventing economies from becoming stagnant or crashed.
Governments commonly suffer from unemployment, where no work is available to citizens and so they are stricken with poverty. Businesses can create jobs and provide salaries to people who are in need of resources, like the money from a salary, to survive. Furthermore, governments also suffer from inflation problems, where the value of a currency dips and becomes less effective. Businesses can help stem this problem by enacting policies that bring value back to currencies. The world today functions on a highly macroeconomic scale, meaning that the economies of many of the world’s nations are intertwined, having shared interests and investments. Because of this, business plays an integral role in moving the world forward to evolving a complex global economy to provide a better standard of living for everyone, properly allocating the limited resources available in the world as well as solving important global crisis, like global warming.