What is the root cause of economic problems?

[Dareo]

-snip-

Among the main causes of economic problems, I think scarcity will come first. Scarcity is not available to everyone, in other words, demand is high but resources are low, which is an economic problem. Moreover, there is unemployment and underemployment, which is increasing the unemployment rate and weakening the economic position of a country. However, all the issues you have highlighted can be the cause of economic problems, so the government of a country must take good steps to improve the economic position and provide good workplaces. To make a country economically prosperous, the country must first reduce its own unemployment and meet the needs of scarcity, only then is it possible.

But for me, though scarcity is the problem, in practice people experience the greatest impact from unemployment and inflation. Because scarcity is everywhere, but how much of a problem it is depends on employment. If they have a source of income, then they can cope with scarcity. But if there is unemployment or low income, then it is a problem. So I think while scarcity is the theoretical cause, unemployment is the trigger, If the government can generate employment, then many economic issues get resolved by themselves.

[Alpha Marine]

When you blame the government, you are blaming a system. The full system not just the government which is just one element within the whole system. The system is called Capitalism which is an economic model designed by the class of rich people to exploit the means of production as the machines and the workers. Banks, monetary institutions, governments, are all unified to form a doctrine to let one class manipulate the other class called Proletaria.

Capitalism is not the problem. I keep seeing people talk against capitalism, as if the alternative is better. Countries that are not practising capitalism are not free of economic problems. Capitalism is a better alternative than any other form of government.
Capitalism becomes a problem when the people who are supposed to make sure things run smoothly don't do their jobs. Capitalism creates more jobs and more money for people. The government is supposed to create an environment that allows more people to do more businesses and thereby create more labour, which in turn puts money in the hands of people.

I will always be pro capitalism because, looking at how greddy an selfish the politicians and government of my country are, I can't even imagine what would happen in a socialist or communist system.
So instead of blaming capitalism, blame the people who are supposed to make sure things run smoothly in the country. Socialism or communism won't stop poverty, nor will it take away unemployment or inflation. As long as the government doesn't do their job, the economic system doesn't matter.

[el kaka22]

Corruption does make sense, in all of the "ideologies" in todays world that we have, in all of them that we thought of, as long as there were zero corruption it would work great. Doesn't matter what you are talking about, capitalism, liberalism, socialism, communism, doesn't matter.

If there were zero corruption, and everyone was with merit and not with nepotism or whatever, we would have been doing far better and do a lot better. This is the issue that we should be considering and nothing more. There would to be any economic problems anywhere in the world either, because the system works. It's the greedy suckers and those politicians getting together and screwing the world in every country that is managed in every possible way.

[AgriTrack]

The cause of a country's economic problems is corruption because corruption leads to the things you mentioned.

So, corruption is indeed the primary root cause of economic problems and corruption can even exacerbate symptoms in a country worsening and accelerating the damage. If we compare corruption to the human body it's like the immune system when it's weak all diseases will easily arise.

The impact of corruption on the economy is very real and becomes a serious problem if corruption worsens in all sectors. Corruption worsens the distribution of wealth which should be for the public good but instead benefits elites with access to power.

The main reason for economic resources is rooted in one important thing resources are limited, while human desires are limited. For example, if we look at resources land, water all of them are limited while human desires include good food good education good living conditions and modern technology. If water is scarce in one place we cannot use it everywhere because when one human desire ends another begins. If we use machines more unemployment can increase. The main reason for this is that the prices of things increase and the life of the common man becomes difficult. Another reason for this is the lack of education. If there is no good degree there is no good job. As long as the problems remain limited economic problems will always exist.

[Ziskinberg]

Its the greed, the love for money of the people sitting in the government positions, that lead them to corrupt the people's funds.

And when there is corruption, these people will no longer focus on their roles and their goals as public servants, but they will just take advantage of the chances and opportunities using their individual positions.

Inflation, scarcity, unemployment, or even underemployment are the possible results of their actions.

[coupable]

When you blame the government, you are blaming a system. The full system not just the government which is just one element within the whole system. The system is called Capitalism which is an economic model designed by the class of rich people to exploit the means of production as the machines and the workers. Banks, monetary institutions, governments, are all unified to form a doctrine to let one class manipulate the other class called Proletaria.

Capitalism is not the problem. I keep seeing people talk against capitalism, as if the alternative is better. Countries that are not practising capitalism are not free of economic problems. Capitalism is a better alternative than any other form of government.
Capitalism becomes a problem when the people who are supposed to make sure things run smoothly don't do their jobs. Capitalism creates more jobs and more money for people. The government is supposed to create an environment that allows more people to do more businesses and thereby create more labour, which in turn puts money in the hands of people.

I will not defend socialism or communism over capitalism because each system has its disadvantages when it is not perfectly applied. But I want to let you know that the concept of corruption has been widely adopted as the most economic crisis with capitalsm more than any other regime during full history. And that what we actually call globalization is in fact called imperialism of the class of bourgoisie to look for new markets and cheap means of production.

You have the right to stand by the regime you want the most, but don't defend it like it is the best option of all times. There are some good examples but people aren't yet aware about them.

[GiftedMAN]

The government not doing the right thing to reduce suffering, high rate of inflation, hunger, high rate of unemployment, greed among the leaders and so on. If you follow up all the things I listed here you will understand that the government has failed the people, they promised us security but there is killing of innocent people my my country, things are so expensive and the minimum wage can not sustain the people for a month if the government decides to tackle all that is listed here things will get better.

[batang_bitcoin]

The government not doing the right thing to reduce suffering, high rate of inflation, hunger, high rate of unemployment, greed among the leaders and so on. If you follow up all the things I listed here you will understand that the government has failed the people, they promised us security but there is killing of innocent people my my country, things are so expensive and the minimum wage can not sustain the people for a month if the government decides to tackle all that is listed here things will get better.

And they'll still tell that they're doing everything in their capacity to cut down inflation. But the results are the ones speaking if they're doing the right thing or not. Because the effects of inflation are very visible and it's not just an image to be seen but an actuality to be lived with. A concerning government will totally do things necessarily with urgency and not just with words but with action. Their actions are visible and if they're true to their words then the citizens will feel all of the actions that they're doing in combating inflation.

[Alpha Marine]

I will not defend socialism or communism over capitalism because each system has its disadvantages when it is not perfectly applied. But I want to let you know that the concept of corruption has been widely adopted as the most economic crisis with capitalsm more than any other regime during full history. And that what we actually call globalization is in fact called imperialism of the class of bourgoisie to look for new markets and cheap means of production.

You have the right to stand by the regime you want the most, but don't defend it like it is the best option of all times. There are some good examples but people aren't yet aware about them.

Currently, it is the best option. Just like democracy is the best option right now. In future, humans may discover a better alternative, but right now, capitalism is the best economic system, and democracy is the best political system. They may not be perfect, they may have room for exploitation, but when compared to the alternative.

No, globalisation is not imperialism. You are from one country, using a phone that was made in China, driving a car that was assembled in Germany and tyres made in Italy. That is globalisation. Globalisation tries to make sure things like this are possible and easier to do. 
Imperialism, according to Oxford Dictionary, simply means

a policy of extending a country's power and influence through colonisation, use of military force, or other means.

So, they are not the same.

Corruption has existed since the days of a monarchy, where one king controlled the whole wealth of the state. So don't make it look like corruption started with capitalism. There was even corruption in the socialist USSR. Corruption would exist wherever humans are. That is why there is a system to check it.

[Jody.Drummer]

-snip-

Among the main causes of economic problems, I think scarcity will come first. Scarcity is not available to everyone, in other words, demand is high but resources are low, which is an economic problem. Moreover, there is unemployment and underemployment, which is increasing the unemployment rate and weakening the economic position of a country. However, all the issues you have highlighted can be the cause of economic problems, so the government of a country must take good steps to improve the economic position and provide good workplaces. To make a country economically prosperous, the country must first reduce its own unemployment and meet the needs of scarcity, only then is it possible.

But for me, though scarcity is the problem, in practice people experience the greatest impact from unemployment and inflation. Because scarcity is everywhere, but how much of a problem it is depends on employment. If they have a source of income, then they can cope with scarcity. But if there is unemployment or low income, then it is a problem. So I think while scarcity is the theoretical cause, unemployment is the trigger, If the government can generate employment, then many economic issues get resolved by themselves.

Another problem is having sufficient sources of income, most people complain about the difficulty of getting a job with a steady income, but if the problem of sources of income is resolved, perhaps the shortage will be resolved too, although it is not guaranteed for sure. I agree with you that if the government can provide adequate employment opportunities then this can basically solve the economic problem, because when it is resolved after that it depends on whether each individual is wise or not in managing their finances. There are some of them who are not wise in managing their money by spending it on things that are not very important.

[Lutengerz]

What is the root cause of economic problems?
Options:
(A) Unemployment
(B) Scarcity
(C) Inflation
(D) Underemployment

For a regular person, Id definitely say both Unemployment. Most people dont have skills to be employed, and settle for low income jobs, leading them to take loans and not paying anything back. Causing more economic problems.

[DYOR+BTC]

What is the root cause of economic problems?
Options:
(A) Unemployment
(B) Scarcity
(C) Inflation
(D) Underemployment

For a regular person, Id definitely say both Unemployment. Most people dont have skills to be employed, and settle for low income jobs, leading them to take loans and not paying anything back. Causing more economic problems.

I won't say the root cause of economic problems in the world now is unemployment,  it is fear beyond unemployment as unemployment is a disease that can be cured with good governance. Remember China many years back, they where the most populated and among the poorest countries then before they experienced the impacts of good governance everything changed and now they have one of the best economy in the world.
What am trying to say is if corruption and bad governance is eliminated,  we will experience rapid change in the worlds economy,  so i think the root cause of the world's economic problem is corruption and bad governance.

[Hanadawa]

However, corruption is not the root of all problems as corruption arises from weak institutions and systems that create large loopholes allowing corruption to occur so massively in every institution. If we want the economy to improve, we must fix or address the root of the problem in this case the country's system itself. Focusing solely on eradicating corruption without addressing its roots will not solve the problem. Therefore, to overcome economic problems the root problem lies in the quality of institutions how regulations are created within each bureaucratic institution. Developed countries typically have inclusive institutions that limit arbitrary power and encourage openness and transparency in all matters.

If you mean improving by replacing the state system, I think that will be very difficult. It's not easy for a country to create a new state system. While I agree that corruption can be eliminated by improving the government system within a country to limit the authority of government institutions, a country with a corrupt government usually already has partners in various government circles, so anything that could potentially prevent them from committing corruption will be excluded from their circle. Corruption that has become a culture within a country's government will be very detrimental to its people. People must pay taxes every year, and officials can enjoy luxurious facilities purchased by the state with tax money. And many of the people are still far from prosperity.

[Mame89]

However, corruption is not the root of all problems as corruption arises from weak institutions and systems that create large loopholes allowing corruption to occur so massively in every institution. If we want the economy to improve, we must fix or address the root of the problem in this case the country's system itself. Focusing solely on eradicating corruption without addressing its roots will not solve the problem. Therefore, to overcome economic problems the root problem lies in the quality of institutions how regulations are created within each bureaucratic institution. Developed countries typically have inclusive institutions that limit arbitrary power and encourage openness and transparency in all matters.

If you mean improving by replacing the state system, I think that will be very difficult. It's not easy for a country to create a new state system. While I agree that corruption can be eliminated by improving the government system within a country to limit the authority of government institutions, a country with a corrupt government usually already has partners in various government circles, so anything that could potentially prevent them from committing corruption will be excluded from their circle. Corruption that has become a culture within a country's government will be very detrimental to its people. People must pay taxes every year, and officials can enjoy luxurious facilities purchased by the state with tax money. And many of the people are still far from prosperity.

Corruption is indeed one of the factors that weakens a country's economy because the destructive power of corruption impacts all aspects and many countries with the highest corruption rates experience stunted or even deteriorating development.

I agree with you. Changing the state system is very difficult perhaps more precisely, changing the bureaucracy or reforming the existing system. The old system is characterized by many overlapping regulations, high personal authority and weak oversight making it easy for abuse to occur creating opportunities for greedy individuals. Therefore, changing the system can reduce loopholes and increase accountability. Furthermore, penalties for corruption should be harsher perhaps even the death penalty is appropriate for corruption. Therefore, corruption can be prevented without changing the system, it must be updated and tightened.

[Cookdata]

Corruption does make sense, in all of the "ideologies" in todays world that we have, in all of them that we thought of, as long as there were zero corruption it would work great. Doesn't matter what you are talking about, capitalism, liberalism, socialism, communism, doesn't matter.

If there were zero corruption, and everyone was with merit and not with nepotism or whatever, we would have been doing far better and do a lot better. This is the issue that we should be considering and nothing more. There would to be any economic problems anywhere in the world either, because the system works. It's the greedy suckers and those politicians getting together and screwing the world in every country that is managed in every possible way.

You can't avoid corruption, even in a perfect system corruption does exit but a place where corruption is minimal, it brings progress and development to everything in that place. I don't think there has ever been any under developed country becomes a developed country without weeding corruption from the root. Look at China before they become big, they had zero tolerance for corruption and adopt full accountability for all public officer, if you are found guilty of some corruption, you are either facing death penalty or going to jail for life, this is how they became one of the robust economy.

However, look deep into underdeveloped countries that has resources. There you can find a sitting president of a nation that has been there for 31 years in office, no progress and yet they have one of the natural resources even the developed countroes doesn't have. The other day, I saw Paul Biya won the recent Cameroon elections to become their president. I couldn't contain my disappointment for choosing an old man that is 90 years old rulling country for more than 40 years and yet no development, I swear African leadership amaze me.

[Uhwuchukwu53]

What is the root cause of economic problems?
Options:
(A) Unemployment
(B) Scarcity
(C) Inflation
(D) Underemployment

For a regular person, Id definitely say both Unemployment. Most people dont have skills to be employed, and settle for low income jobs, leading them to take loans and not paying anything back. Causing more economic problems.

I won't say the root cause of economic problems in the world now is unemployment,  it is fear beyond unemployment as unemployment is a disease that can be cured with good governance. Remember China many years back, they where the most populated and among the poorest countries then before they experienced the impacts of good governance everything changed and now they have one of the best economy in the world.
What am trying to say is if corruption and bad governance is eliminated,  we will experience rapid change in the worlds economy,  so i think the root cause of the world's economic problem is corruption and bad governance.

You sighted a very good example of this issue, that speak volume in my mind, any bad economy is propelled by the leadership and level of corruption of the people. A nation may not have what it takes to make names in the global economy but good leadership without corruption can change the narrative for instance Indonesia and others countries are doing well economically with palm fruit seed gotten from Africa because they have good leadership and have less corruption they contributing to the global economic growth and meeting the human needs, corruption is a catalyst that kills all spheres of life including the economy.

[slapper]

Its the greed, the love for money of the people sitting in the government positions, that lead them to corrupt the people's funds.

And when there is corruption, these people will no longer focus on their roles and their goals as public servants, but they will just take advantage of the chances and opportunities using their individual positions.

Inflation, scarcity, unemployment, or even underemployment are the possible results of their actions.

If there is a chance to get what you want by bending the rules, its smart to do so. Being loyal to people instead than policies is a sign of warmth, not weakness. Well, what were we expecting when the same guy with those ideals got a ton of power and very little control over him? What was the plan on that? 

Not everyone who corrupts does it for purely selfish reasons. This becomes partly due to the slow accumulation of small decisions that do not seem to count at the beginning. But over a period of time and cumulatively, it amounts to something horrible. No one comes in and says on day one, "I am going to run a corrupt government". It happens little by little. 

Inflation and unemployment are symptoms of a loss of faith at a macro-level. Economies run on trust. Believe that contractual agreements will be honoured, that organisations will adhere to their own rules, and that efforts invested today will bear fruit in the future. Systematically, corruption deceases such trust. When trust is lost it rarely returns fast. The economic literature on how to re-establish faith in institutions after corruption is quite grim. Sometimes it took decades.

[Faisal2202]

Corruption does make sense, in all of the "ideologies" in todays world that we have, in all of them that we thought of, as long as there were zero corruption it would work great. Doesn't matter what you are talking about, capitalism, liberalism, socialism, communism, doesn't matter.

I can't agree more with you, corruption has done more damage than anyone could anticipate. Actually, it is done by the smallest unit of a society, meaning even an ordinary person is doing it because they have to do something but the official way is expensive so they try to find a middleman who can do it for less money, that's how corruption is loved by most. For example, it is your right to get something from someone, but they are not giving you, and legally you can take action.

But in a country where there is less or no justice served due to corruption already (already means you happen to face such a situation, and in the country you are living, corruption is already very high), now that, without paying, your work won't be completed.

That's how they have run this as a business.

[Shadiq]

The main cause of economic problems is corruption and it is the responsibility of the government to prevent this corruption. If we get an honest and strict government against corruption then maybe the economic problem can be solved. So I am still in a dilemma whether the main cause of economic problems is corruption? Or the government? The general answer would be corruption, but the main cause of economic problems is the government.

Corruption in a country is possible only when the government of that country is corrupt or supports corruption or fails to deal with corruption, the government must take responsibility for it. You look at Dubai, look at China or look at Singapore, how they have dealt with corruption and have moved ahead economically

[Primark]

What is the root cause of economic problems?
Options:
(A) Unemployment
(B) Scarcity
(C) Inflation
(D) Underemployment

The main economic problem is scarcity. Although human needs are high, resources are limited. The main challenge of the economy is to use these limited resources properly.
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