por What are economic facts?
The economic factseither economic acts, are factors that affect the natural development of the economy of a society. These facts, also called economic phenomena, cause an economic impact on societies, and bring repercussions that manifest themselves in the medium and long term.
Usually, they occur as a consequence of changes that affect the functioning of a society, which do not necessarily have to be economic to cause repercussions to the economy itself. War, hyperinflation and corruption usually cause negative economic phenomena in a country.
Economic facts are closely linked to social activity. Regardless of the cause of its origin, an economic phenomenon is caused –almost entirely– by the need that people have to improve their economic status.
Principles of economic facts
In order to satisfy their needs, human beings perform certain actions that alter the course of the economy of a society, when they are carried out en masse.
For example, in a country where there are food shortages and problems generating cash income, it is common for the population to seek an escape route: this almost always translates into emigration.
Furthermore, all economic facts are quantifiable. It is possible to determine the origin of a problem and in what volume it is manifesting itself. When there is a shortage, it is possible to assess the level of the shortage and the amount of raw material needed to stop the problem.
In general, economic facts can be classified in various ways. Given their quantifiable nature, it is possible to evaluate the effect they cause in the different areas of the economy.
The increase in prices, the increase in taxes, accelerated inflation, the decrease in corruption, or the increase in the minimum wage in countries with a stable economy are some of the catalysts for economic change in a country.
negative nature
Although economic facts can be positive, most of the drastic changes that are generated as a consequence of changes in the economy usually cause damage to the economy of a country.
It is correct to assume that most economic events are harmful to a society, such as accelerated migration, lack of basic services and unemployment.
Importance of economic facts
Economic facts consist of the physical manifestation of situations that affect the course of the economy of a country, a continent, or the world, according to the scale that is studied.
These facts usually have a background that goes beyond economics. In many cases, they reflect the social and political problems of a country.
However, economic events can have positive consequences within the economic sphere of a nation.
The increase in interest generated in banks –combined with low inflation–, for example, promotes the saving mentality of the inhabitants of a country.
Types of economic facts
shortage of goods
Scarcity is the limited availability that individuals have to obtain a product that may be in demand in the market. When the phenomenon of scarcity occurs, there is never enough «of something» to satisfy all human needs.
The shortage of cement is a key example to explain such a term as an economic fact. As cement is scarce, construction works tend to be reduced, since cement is a fundamental material for this activity.
This economic fact has as a consequence unemployment within engineering, causing a basic problem within societies. Or the substantial increase in housing.
migratory phenomena
Migration phenomena consist of the mobilization of people with the intention of settling temporarily or permanently in another city within the same country or in another country.
One of the reasons why individuals migrate is because of the salary difference between one geographic location and another. Human beings are characterized by seeking a better quality of life, if a country or city offers better conditions, the natural action is that the individual has to migrate.
Wars are another reason for migration, as people flee the place of conflict to save their lives.
Unemployment
If an individual has the ability to work and through no fault of their own cannot do so, the individual faces the phenomenon of unemployment.
If, for example, there is a severe shortage of cement, both the workers and the professionals in the construction area would not be able to work, which translates into the growth of unemployment.
Likewise, the industries, the distributors of materials, as well as the other professionals who participate in this activity, would be in the presence of this phenomenon.
Examples of Economic Facts
exodus in syria
The Syrian civil war, which began in 2011, has resulted in a huge number of refugees who have fled the country. Many Syrians have had to migrate to neighboring countries such as Jordan, Lebanon, Iraq and even Europe, in search of a peaceful life.
In 2016, approximately five million Syrian refugees were registered, making it one of the largest exoduses in recent history. About 25% of the Syrian population has had to emigrate.
It is estimated that 6,000 Syrians escape from their country to other borders every day, causing the death of many children and adults on that journey.
Youth unemployment in Greece
As of May 2017, the youth unemployment rate in Greece reached 46%, causing growing poverty among Greek youth.
This figure means that approximately half of the Greek youth population cannot find employment opportunities.
In addition, this fact has caused an injury to the Greek economy. One of the factors behind the high youth unemployment rate is debt. Excessive military spending and a growing banking crisis caused Greek debt levels to rise dramatically.
However, as of 2017, unemployment in Greece has decreased significantly towards 20.6% compared to 2016. Even so, women are still more disadvantaged than men, so the unemployment rate is higher for they.
Shortage of basic products in Venezuela
The control of prices by the Venezuelan government, the little production of private and public companies from the government of Hugo Chávez Frías until today, in addition to the implementation of other policies, have caused a severe shortage of first-class products. need in Venezuela.
According to the Venezuelan Pharmaceutical Federation, in 2017, the shortage of medicines reached 85%. This economic phenomenon has made a large number of Venezuelans hungry and deprived of essential medicines to be able to live.
The seriousness of the shortage has led Venezuela to become the country with the largest number of refugees registered in the American continent.
war in ukraine
The Russian invasion of Ukraine, carried out in February 2022, has caused more than 6 million Ukrainians to leave their country, not counting those displaced within the same territory and those who have been forced to remain in Russia.
With a population of around 44 million, it is estimated that 15% have emigrated in 4 months.
References
The economic fact Taken from abc.com.py
Prospect: The Economic Phenomenon. Taken from henryflynt.org