We explain what economic problems are, the three basic types and the most frequent. Also, economic problems in Mexico.
What are financial problems?
It is understood by problems economic to the set of phenomena produced when resources are not enough to satisfy their own needs. This can happen both with the resources of the nations, organizations Y persons.
Precisely, the economy studies how to meet the needs of the population, through a finite set of resources and possibilities. Countries and organizations invest a good part of their efforts in preventing economic problems, seeking the greatest possible stability in the matter.
This type of inconvenience triggers other Social problems, cultural and political. Left unattended, economic problems can grow or become more complex, finally opening the door to more catastrophic or irreparable situations.
In general, economic problems are understood to be those that refer to the financial, budgetary, productive or similar aspects.
Types of economic problems
There are many types of economic problems, but according to classical doctrine, the three main ones are:
- The orientation of the productive process. That is, the decision of what and how many goods will be produced, when they will be produced and what elements their production implies. Without this decision taken beforehand, the production process will not even be able to start.
- The organization of production. That is, how will the goods be produced? Through what methods, and where? These questions contain the criterion by which production must occur, and which will define much of the process and the results obtained.
- The allocation of production. In other words, for whom are these goods produced? How will they be distributed? How will productive effort be rewarded among the workers? Without these details worked out, production runs on risk of being useless, of having produced for no one.
These three basic dilemmas describe what you need to plan for so as not to incur the most common financial problems, such as:
- Inflation. The progressive loss of the value of the currency against the market, that is, with the same amount of money you buy less and less.
- Economic stagnation. We speak of economic growth when the amount of commercial and financial operations in a nation increases, and of stagnation or recession when there is no growth or when the opposite occurs, respectively.
- Unemployment. Lack of work and therefore of incorporation into the productive engine of the society of a variable number of persons. High levels of unemployment translate into increased poverty.
- Poverty. When a segment of the population is economically unable to meet its own needs, thus depending on the help of others or the Condition, or even engaging in irregular activities as the sole source of income.
- Devaluation. Fall in the international value of a currency compared to other countries, due to an unfavorable exchange balance or a growing disparity in the type of operations carried out in the stronger currency, than in the weak one.
Economic problems in Mexico
Mexico, like many other nations latin americanIt has an unstable economy, at least compared to the so-called First World countries. This can be seen in its main economic problems, which are:
- Devaluation of the peso. The rise in US interest rates during the government of Donald Trump, given the interconnectedness of the Mexican economy with that of its northern neighbor, caused the loss of strength of the Mexican peso and forced the devaluation.
- Fall in prices of Petroleum. After the enormous bonanza that the rise in the price of the raw material, the price of oil has plummeted and that means a significant reduction in Mexican economic income.
- Corruption. It is rather a problem of social nature or political, but that always has a high economic impact. Waste, bad money or public money tenders at a loss, in short, traps that do not benefit the economy local but to the pocket of third parties, are a common problem throughout the Third World.