The main problems of the economy and their solutions
All the main problems of the economy stem from the fact that the world economy is forced to operate with due regard for the limited resources and the infinite human needs. Throughout history, mankind has to choose the most effective option for the distribution of existing factors of production. All major economic problems arise precisely because of the incorrect answer to the question of what, how and for whom to produce. Let's answer it and we.
What to produce
A country can provide itself with the necessary benefits in various ways: produce them on its own, exchange them for other goods, and receive them as humanitarian aid. But getting everything at once is unlikely to work out, so you always have to limit this or that need. To ensure that the main problems of the economy do not affect the development of the economy of this particular state,his government must act coherently in determining which products need to be obtained immediately, with which you can wait, and from which you can completely refuse. Sometimes this choice can be very difficult. In developing countries, sometimes there is not enough money to even feed the population. Because of this, increasing production, as a way to solve all the main problems of the economy, may not work, because the labor force is already fully occupied. In this case, it is necessary to modernize the existing equipment, however, this again requires money, which the state does not have. You can try to switch production to the production of capital goods, however, this will temporarily lower the standard of living. But who promised that the choice will be easy?
How to produce goods and services
The current problems of the economy are connected with the fact that developing countries simply do not have the opportunity to use the latest technologies, which significantly reduces the set of benefits produced. Nowadays there are many projects on which you can build similar buildings, and identical cars, if you try, you can assemble both on the conveyor and manually. Organize production, too, can be completely different.In some countries, the decision to start construction is taken only by state bodies, in others - private firms.
For whom to produce products
Since the release of benefits is limited, their distribution is also an economic problem that needs to be resolved. The government has to determine how to use the goods and services produced in such a way as to extract maximum utility. At the global level, in our time, the leaders of the international community decide how to distribute them between the poor and the rich, taking into account humanistic goals in order to eliminate the main problems of the economy.