Final answer:
The three pillars of the economy of Panopticism include determining what to produce, how to produce, and for whom to produce, while focusing on economic growth, low unemployment, and low inflation. These pillars highlight resource allocation, workforce utilization, and price stability as key economic goals.
Step-by-step explanation:
The concept of the economy of Panopticism can be represented by understanding the three fundamental questions that govern any economic system. The first is what should be produced, followed by how it should be produced, and finally, for whom it should be produced. These questions essentially address the scarcity of resources and how a society decides to allocate these resources effectively.
To explore further, an important goal for any economy is achieving economic growth, which refers to the increase in the value of goods and services produced by an economy over time. An integral part of this growth is human capital deepening, which enhances the workforce's skill set, and physical capital deepening, which involves the increase of physical resources. Technological advancements also contribute significantly to productivity and, consequently, to economic growth.
Another primary goal is maintaining a low level of unemployment, ensuring that the majority of the workforce is employed, which in turn stabilizes the economy and supports the market system. Lastly, low inflation is crucial as it preserves the value of money, ensures stable prices, and therefore, maintains consumer and investor confidence.
A command-leaning system will have different approaches to these pillars compared to a market-oriented system, especially in terms of government's role in fostering a healthy economic climate. Economic convergence is another concept that refers to the hypothesis that poorer economies' per capita incomes will tend to grow at faster rates than richer economies. While there are debates for and against economic convergence, it is generally considered a desirable goal, indicating that disparities between economies can lessen over time.