The Sporacity Of Economic Crises

The sporacity of economic crises

The economic crisis is an economic factor that is characterized by having negative effects, such as economic recession or depression, which is the decrease in consumption and investment and increase in unemployment, likewise, it is important to highlight that shortage is reflected in the Production, marketing and consumption of products and/or services, however, this phenomenon is remarkable in societies belonging to the Third World, because the price of the market of raw materials is fluctuating and destabilize the financial system of a country.

There are many factors that can cause an economic crisis; It can be the increase in the price of oil, credits at a lower price, which encourages investment causing savings reduction, where the country prefers to enter an uncontrolled consumerism, rather than invest in raw material to strengthen its production, in the same way The incorrect implementation of economic policies established by the Government, natural catastrophes, wars between countries, constant changes in raw material prices, social and political impacts (the quality of life of the inhabitants and the protests they make by The lack of resources or incorrect state administration), poverty in the same way is a consequence of the economic crisis where the lower and middle class are directly affected, likewise, the upper class undergoes changes specifically when one of its assets loses value, according to international markets prices.

However, external debt facilitates economic restoration among the affected country to correct the problem, but it should be noted that this help can affect the long -term decision making of this.

From the sociological point of view, we find consequences that directly affect the individual in the psychological and economic field. Psychologically, stress problems, depressive presence, and the negative attitude towards decision making, on the other hand, in the economic part they are affected by unemployment, lack of opportunities, companies are forced to close, the increase in prices is a main factor, exports decrease, production is scan. And so we realize the conditions in which there are some victims left by the economic crisis.

One of the ways to control this social fact is that the production system self-regulates and forms raw material protection mechanisms to contribute to the support of the internal economy. Let’s keep in mind that economic crises are inevitable due to the capitalist production system, where the person with purchasing capacity is the one that invests capital to generate wealth.

Economic crises are temporary, because the government generates alternatives to reduce the economic recession that a country suffers, lowering taxes and flexible market prices, so that savings are strengthened in the transformation of raw material and subsequently commercialization product and/or service.