See the instructions

Community Economic Growth
Name:
Institutional Affiliation:
Community Economic Growth
The forces of demand and supply play a significant role in balancing the interests of all parties in the market. In some cases, government intervention affects the status quo thereby, exposing the vulnerable people in the community. According to the Smith’s notion of the Invisible Hand, the external factors affect the social-economic status of people in the society. On the other hand, government policies are important when it is planning to implement a project that is meant to improve the welfare of the people in the community. In addition, it provides a parameter of measuring the progress. As a result, the administration is at a position to make the necessary changes to ensure that it meets the interests of the people on the ground. This explains the reason why a policy should involve the stakeholders who are directly affected by the intervention. Therefore, policy acts as a blueprint or a guideline to ensure that the government lives to the expectation of the people.
Keywords: Parameters, Stakeholders, Blueprint
Adam Smith’s notion of Invisible Hand functions by creating a situation where the rich dominate the products and services that are consumed by these people. When the government allows the forces of demand and supply to control the prices in the market, the vulnerable people are exposed especially at a time when companies are more profit-oriented (Grampp, 2000). However, the invisible hand creates a chance for more players in the market, thereby, increasing the level of competition while at the same time creating employment for the community members.

Public policy is a guide towards government decisions that are meant to improve the overall welfare of the people. It is a blueprint of what is intended to be achieved with the aim being to ensure that the country achieves sustainable development. Each day, the government makes critical decisions which affect the lives of the people. However, without a public policy, it is hard to develop effective parameters to measure the success of the action. Furthermore, a policy plays a critical role in enabling the government to monitor and frequently evaluate the on-going projects to ensure that they are beneficial to the people. It outlines the vital areas that need to be addressed to spearhead economic growth in the economy. For instance, an educational policy can be drafted to target school dropout. It can aim at equipping them with vocational training. Overall, such a policy can reduce poverty levels by decreasing the level of reliance by children on their parents. Lastly, a policy outlines the best strategy to undertake to achieve economic growth without affecting the current gains. This is the reason why all stakeholders should be involved when drafting a policy.
Reference
Grampp, W. (2000). What Did Smith Mean by the Invisible Hand? Journal of Political Economy, 108(3), 441-465.