Economic Problems That Hamper the Growth

The economic challenges and problems prevalent in today’s world revolve around several dynamic aspects of society. The academia of economics, as well as its material behavior, is based around man, society, and institutions. The theories that are used to solve financial problems are usually true, but not always. The faster we grasp the fact that economics is an art that revolves around man, the sooner we will be able to have financial peace. Another truth that we need to accept is that hardships or challenges are always going to be present.

What is an Economic Problem?

In a broad sense, an economic problem can be defined as an abnormal and irrational or irrelevant behavior by socio-economic units and market components. There are innumerable causes for this. Though there is no scale that measures the level of abnormal behavior, a financial problem is said to have arisen when the abnormal behavior by economic components tend to affect several institutions.

In this discussion, market components signify 3 major constituents of the market, namely, demand, supply, and price. Though the magnitude of all the three components is small, it plays a highly influential role at a macro level. The term institute defines individuals, organizations, companies, government, governing bodies, and any unit which is capable of conducting economic activity.

Meaning
There are several definitions that elaborate upon this term. However, the simplest definition that is accepted world wide is that ‘a problem is an abnormality in economic institutions or constituents that in the view of society at large has a negative influence on earning and spending’. Rise in the price of gas by 1 cent is not an economic problem, but a rise by USD 10 is stated to be one.

Scarcity
Classical and neo-classical economists and also their school of though, have presented a very practical explanation of the challenges facing any economy. Human wants are unlimited. However, the volume of available resources that is used to fulfill them is very limited. Even the alternatives that are present are limited. This combination of limited resources and unlimited demands results into problems. This approach is often termed as the scarcity approach. Thus, when you try to find the solution, you will have to focus on unlimited wants and limited resources.
List of Economic Challenges

Here is a small list of economic problems, which is not totally complete and academic arguments to some elements in the list are welcome.
Anti-competitive behavior, laws, and practices
Mass bankruptcy filings and insolvency
Economic bubbles and mass business failure
Child labor and improper child welfare development
Commercial crimes and intentional or planned corporate offenses