There are, in the last resort, no economic ends. The economic efforts of the individuals as well as the services which the market order renders to them, consist in an allocation of means for the competing ultimate purposes which are always non-economic.
The task of all economic activity is to reconcile the competing ends by deciding for which of them the limited means are to be used. The market order reconciles the claims of the different non-economic ends by the only know process that benefits all – without, however, assuring that the more important comes before the less important, for the simple reason that there can exist in such a system no single ordering of needs.
-F.A. Hayek (“The Mirage of Social Justice”)
While “The Market” is considered to be the Economy, Hayek is pointing out that it isn’t “The Economy, stupid” that’s important – it is what the results of the economy can do for Individuals.
Lately, we’ve been hearing that “this” hurts the economy, or “that” hurts the economy (e.g., shortage of workers, shortage of this skill or that skill, or all kinds of perceived inequalities), right? That misses the point of HAVING an economy!
The economy, if one wishes to call it that, exists as a mere sifter of goods and services to consumers who are not looking to solve an economic issue but to satisfy the desires and needs of Individuals. I want a house to stay dry and warm, I want a car so as to go from Point A to Point B in relative comfort, speed, and reliability. And I used to desire a better sound system so as to enjoy listening to music more.
I use the economy to obtain these things so I do participate in the economy but that’s secondary to what I either need (like food) or want (an even faster computer, well, just because I want it – and there is nothing wrong with that!).
(H/T: Cafe Hayek)
