ECONOMIC FACTS: WHAT THEY CONSIST OF, TYPES AND REAL EXAMPLES - ECONOMY - 2025

Economic facts or economic acts are factors that affect the natural development of the economy of a society. These events, also called economic phenomena, change the traditional perception that one has about the economy in a society, and bring with them repercussions that manifest themselves in the medium and long term.

These events usually occur as a consequence of changes that affect the functioning of a society, which do not necessarily have to be economic to cause repercussions on the economy itself. War, hyperinflation and corruption usually cause negative economic phenomena in a country.

The Photographer, from Wikimedia Commons

Economic events 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.

What are 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 studied.

These events 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 environment of a nation. The increase in interest generated in the banks - combined with low inflation -, for example, promotes the thrifty mentality of the inhabitants of a country.

Principles of economic facts

In order to satisfy needs, man carries out a series of actions that, when carried out en masse, alter the course of the economy of a society.

For example, in a country where there is a shortage of food and problems to generate cash income, it is very 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 source of a problem and in what volume it is manifesting. When there is a shortage, it is possible to evaluate the level of this and the amount of raw material that is needed to stop the problem.

In general, economic events can be classified in various ways. Given their quantifiable nature, it is possible to assess the effect they cause in different areas of the economy.

Rising prices, rising taxes, accelerating inflation, decreasing corruption, or raising the minimum wage in countries with a stable economy are some of the catalysts for economic changes in a country.

Negative nature

Although economic events can be positive, most of the drastic changes that are generated as a result of changes in the economy usually cause damage to the economy of a country.

It is correct to assume that most of the economic events are harmful to a society, such as accelerated migration, the scarcity of basic services and the unemployment crisis.

Types

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 cement shortage is a key example to explain such a term as an economic fact. With the scarcity of cement, construction works are prone to decline, as cement is a fundamental material for construction.

This economic fact has as a consequence unemployment within engineering, causing a basic problem within societies.

Migratory phenomena

Migratory phenomena consist of the mobilizations of people with the intention of settling temporarily or permanently in another city within the same country or in another country. Another economic fact that affects the quality of life of individuals is migration.

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.

Unemployment

If an individual has the ability to work and cannot do so for reasons beyond his control, the individual is facing the phenomenon of unemployment.

If, for example, there is a severe shortage of cement, both workers and professionals in the construction area would not be able to work, which translates into growing unemployment.

Likewise, industries, material distributors, as well as other professionals who participate in this activity were faced with this phenomenon.

Real examples

Exodus in Syria

The Syrian Civil War, which started in 2011, has resulted in a huge number of refugees who have fled the country despite the war. Many Syrians have had to emigrate to neighboring countries like Jordan, Lebanon, Iraq, and even Europe in search of a quiet 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 flee their country daily to other borders, 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 a growth in poverty among young Greeks. This figure means that approximately half of the Greek youth population cannot find employment opportunities.

Furthermore, this fact has caused an injury to the economy in Greece. One of the factors behind the high youth unemployment rate is Greek 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, thus the percentage of unemployment is higher for them.

Shortage of basic products in Venezuela

The control of prices by the Venezuelan government, the low production of private and public companies since the government of Hugo Chávez Frías until today, in addition to the implementation of other policies, has caused a severe shortage of premium products. need in Venezuela.

According to the Pharmaceutical Federation of Venezuela, in 2017, the shortage of medicines reached 85%. This economic phenomenon has made a large number of Venezuelans starving and deprived of essential medicines to live.

The severity of the shortage has led Venezuela to become the country with the highest number of refugees registered in the American continent.

References

1. The economic fact, Portal ABC, (2008). Taken from abc.com.py
2. Prospect: The Economic Phenomenon, Henry A. Flynt, Jr (2004). Taken from henryflynt.org
3. Shortages in Venezuela, Wikipedia in English, (nd). Taken from Wikipedia.org
4. Seven Years of War, Death and Exodus in Syria, Alice Cuddy, (2018). Taken from es.euronews.com
5. The Youth Unemployment Rate in Greece, Website The Borgen Project, (nd). Taken from borgenproject.org