A balanced federal budget and a balance of trade are secondary goals of macroeconomics, while growth in the standard of living (for example) is a primary goal. Why do you think that is so?

In macroeconomics, there are various goals that policymakers aim to achieve in order to foster economic stability and development. Primary goals are objectives that have a direct impact on the welfare of citizens, while secondary goals are objectives that have an indirect impact on the economy. A balanced federal budget means that government revenues (mainly through taxes) equal government expenditures. Balance of trade refers to the difference between a country's exports and imports of goods and services. If this balance is zero, it means that a country is neither running a trade deficit nor a surplus; its imports are equal to its exports. Growth in the standard of living is the improvement in the level of material comfort and quality of life, which is usually measured through GDP per capita or the human development index.

A balanced federal budget is important because it implies fiscal responsibility, meaning that the government only spends what it earns, avoiding excessive debts that could lead to future economic problems. However, it could also indicate insufficient government investment in public services or social programs. A balance of trade is important because it signifies that a country is not too reliant on imports, which could be detrimental if global economic conditions change, or receiving excessive income from exports, which could lead to an overvaluation of the currency, making domestic industries less competitive.

Growth in the standard of living refers to an increase in the overall well-being and prosperity of citizens. It is a crucial goal because it directly influences the quality of life and opportunities available for individuals. A higher standard of living includes better access to education, healthcare, employment, and other socio-economic benefits.

One reason growth in the standard of living is considered a primary goal is due to its direct impact on the welfare of citizens. While secondary goals such as a balanced federal budget and balance of trade may contribute to economic stability and long-term growth, they do not guarantee improvements in individual well-being or living conditions. For instance, a country may experience export surpluses, indicating a positive balance of trade, but if this income is not efficiently distributed among citizens or invested in public services, the overall standard of living might not improve.

In conclusion, growth in the standard of living is considered a primary goal in macroeconomics because it directly impacts the well-being, quality of life, and opportunities available for individuals. While secondary goals such as a balanced federal budget and a balance of trade are important for economic stability, they serve as means to achieve the primary goal of improving the standard of living for the population.