On the Nature of Commonweal Economics

JIN Bei

Director and Professor of Institute of Industrial Economics,

Member of the Chinese Academy of Social Sciences

Abstract: The purpose of economic activities boils down to improving people’s commonweal (“minsheng” in Chinese, which refers to people’s welfare, well-being and livelihoods). The more equal income distribution is, the higher the aggregate social utility will be. Hence, the ability to meet basic commonweal needs and rights is a symbol of a country’s commonweal achievements and improvements. Commonweal goods are provided through businesses, nonprofit organizations and government institutions. The coexistence of these three types of organizations emphasize their respective strengths and overcome their weaknesses. No matter which organization provides any given commonweal good, there is no free lunch. It is an important question of choice as to under what conditions should public needs be replaced by government decisions (choices) and what are the consequent costs. After a country has built a basic material foundation to ensure public welfare, the satisfaction of commonweal needs will increasingly take on cultural elements. Hence, commonweal values are evolving. Supply and demand of commonweal goods and the material cost for commonweal satisfaction (happiness) are subject to substantial changes. Great commonweal achievements and improvements cannot only be “good deeds” that are of immediate benefit to the people. They should include the establishment of sound economic mechanisms supported by the people and that can deliver commonweal improvements on a sustained and extensive basis, as well as compatible social and political systems.

Key Words: commonweal, social welfare, economic growth, income equality, universal supply, social values

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