Economy is the art of meeting limitless needs with limited resources

To write this essay I chose the statement of the famous American writer Lawrence Peter that "economy is the art of satisfying limitless needs with limited resources".

In my opinion, the meaning of this statement is that the main task and goal of the economy is to meet the growing needs of man, while taking advantage of the limited wealth of our planet.

I agree with this statement, because the essence of economics is to preserve natural resources, but to meet human needs.

In order to fully reveal the meaning of the statement, let us turn to the terms. The term "economy" has two meanings: economy as science and economy as economy. Economy as economy is a system of management, which includes branches of material production and non-material sphere, providing society with material and non-material benefits. Economic science, on the other hand, explores how people in resource-limited settings meet ever-growing needs, which is what Peter says. In turn, a need is a need for something to sustain and develop the life activities of individuals and society as a whole. In addition, the statement refers to resources, and resources (in the language of economists - economic benefits) are the means necessary to meet people's needs and available to society in limited quantities. It allocates time resources, labour resources, natural resources, financial resources, various tools. Thus, the growing needs of people must be met, and so does the economy. For this purpose, different types of economic systems have been developed: command-administrative, market, traditional and mixed. Each of these types has its pros and cons, but each of them satisfies the most important needs of people.

However, these systems may not always meet people's needs. Let us confirm this statement by giving an example from the history of our country. Thus, the whole XX century in our country was dominated by a totalitarian political regime with a command economy. Often it was possible to find the absence of many goods, for example, red caviar, but an abundance of other products: canned food, stew, etc., on the shelves in the shop. As a result, people were unable to fully meet their needs.

In today's renewed Russia, a mixed type of economic system prevails, allowing people to fully meet their needs. Science is actively developing, looking for new ways to produce limited resources. Today everyone can simply go to the nearest supermarket and buy there everything they need. That is, the main goal of the economy, its main task, which Peter talked about, has been realized.

Thus, I am again ready to agree with Peter's statement, because especially in today's developed society it is necessary to satisfy people's needs, thus "adjusting" the favorable ground for their development, so that they could find new ways to solve the problem of limited world resources.