Why Is the Economy Important?

By Staff WriterLast Updated March 24, 2020

The economy, as a system of resource use and distribution, is important because resources are finite. Understanding the economy is crucial to political awareness and becoming an informed citizen.

Even minor fluctuations in an economy can have a knock-on effect at every level of society, and can affect the job stability and future income, including the pension or retirement fund, of just about anyone.

Protecting the economy from foreign competition is a controversial subject, however proponents of the idea argue that outsourcing manufacturing to international markets can have a devastating impact on the ability of a nation to support itself. They point to the United States’ dependency on imported goods and outsourced industry as an example.