The economic problem

The economic problem (in English: Economic Problem), also called the scarcity problem.[1] It is defined as a problem facing human societies, and is related to the interest in the scarcity of economic resources in order to allocate them to provide most services and goods within the economic sector.[2]

The economic problem is concerned with studying the relationship between economic resources on the one hand, and society and individuals on the other hand, and this problem is linked with human needs such as the need for water, food, shelter, and other basic needs that contribute to the continuation of life; This prompts people to seek appropriate means and sources to satisfy their needs, so they discover that these needs are more than they are able to satisfy within the available economic resources, and this results in the emergence of the economic problem.[1]

characteristics of the economic problem

The economic problem, as one of the foundations of economics, is characterized by a set of characteristics, namely:

  • General: is the nature of the economic problem, which is characterized as a spatio-temporal problem; That is, it exists, ancient and modern, and extends to all places, and is not restricted to just one place.[3]
  • permanence; That is, it is an eternal and permanent problem that appears in all times and ages; Since ancient times, man has faced an economic problem that modern societies suffer from, and newer societies will face it in the future.
  • Relative scarcity: is the lack or insufficiency of the supply of resources;[4] Resources are finite in nature and have diverse uses, and as a result people have to choose between them.[3]
  • The problem of choice: is the limited economic resources that are offset by the lack of limitation in human needs; Where the needs of individuals remain more than the available resources.[3]
  • Sacrifice: It is the individuals giving up their own needs in order to satisfy other needs of importance to them, and it depends on the comparison and comparison between a set of needs, and then arranging their priorities for each individual in order to allocate him the appropriate resources for them in order to satisfy his own needs.[3]

Fundamentals of the economic problem

The economic problem is based on two foundations:[3]

  • Human needs and desires: These needs characterize individuals; As they constantly seek to satisfy them, these needs are divided into two parts:
  • Resources (production elements): They are all the natural resources that God Almighty created on this earth, and which are harnessed for individuals to produce services and goods, and they are divided into two types:
  • Necessary needs: They are the main and basic needs that life can only continue by relying on them, including clothing, housing and others.
  • Luxuries: are the needs that individuals can dispense with, and do not directly affect their lives, and are sometimes known as luxury needs. Examples include cars, mobile phones, and others.
  • Non-economic resources (free resources): they are resources that no one owns, but are considered the property of all people, and they exist in life in large and unlimited quantities; Therefore, it is not considered a cause of the economic problem, and examples of these resources are the sun, and the air.
  • Economic resources: They are limited and scarce resources, and they cannot be provided or obtained without effort or price. These resources are considered insufficient to satisfy the needs of individuals, and they are divided into the following types:
  • Labor: The number of hours it takes for services or goods to be produced.
  • Land: It is the resources of the land, such as minerals, agricultural, water and other resources.
  • Capital: money, equipment, and real estate used in production.
  • Organizing: It is the effort used in coordinating and planning the use of resources at the lowest costs and in the best way.

Economic systems and the economic problem

The intellectual systems of economics differ in determining the nature of the economic problem in order to formulate appropriate solutions to it. The following is information about these systems:

  • Islamic economic system: It is the system based on the principles of the Islamic religion, and believes that the economic problem came as a result of man’s injustice to himself through the application of wrong policies during the distribution of economic wealth, and his failure to exploit everything that God Almighty has subjected him to on earth.[5] وبيّنَ القرآن الكريم هذا الأمر في قوله تعالى: (اللَّهُ الَّذِي خَلَقَ السَّمَاوَاتِ وَالْأَرْضَ وَأَنزَلَ مِنَ السَّمَاءِ مَاءً فَأَخْرَجَ بِهِ مِنَ الثَّمَرَاتِ رِزْقًا لَّكُمْ ۖ وَسَخَّرَ لَكُمُ الْفُلْكَ لِتَجْرِيَ فِي الْبَحْرِ بِأَمْرِهِ ۖ وَسَخَّرَ لَكُمُ الْأَنْهَارَ*وَسَخَّرَ لَكُمُ الشَّمْسَ وَالْقَمَرَ دَائِبَيْنِ ۖ وَسَخَّرَ لَكُمُ اللَّيْلَ وَالنَّهَارَ*وَآتَاكُم Of all that you asked him, and if you count the blessings of God, you will not be able to count them, for man is unjust, unbeliever). Great truth of God.[6]
  • Capitalist economic system: It is an economic system that sees that the cause of the economic problem lies in the lack of resources and production factors; Where man wants diverse and unlimited needs, but the means for satisfying them are limited, whether they come from human energy or land resources, and man exploits his own energy, and the resources provided by this universe; However, he cannot reach all his desires, hence the economic problem that must be solved, and the capitalist system considers that its solution is linked to the optimal distribution of resources on individual bases, and is not linked to human need but is limited to free business.[5]
  • Socialist (Marxist) economic system: It is an economic system that sees that the cause of the economic problem lies in the lack of development in the distribution relations with the special form of production, so economists must discover the laws of the development that took place historically, and there is no relation to man in it, which forces societies to impose A change in the relations of distribution, as the Marxist system appeared as a result of a reaction to the bad capitalist system, but it did not succeed in identifying the causes of the economic problem, and its treatment was wrong. Reports proved the emergence of a failure to increase the rate of production; This led the major thinkers of this system to retreat from their principles, and to declare the necessity of using material incentives to support increased production.[5]

the reviewer

  1. ^ AB Muhammad Mahbek, Economics (Science), The Arabic Encyclopedia, accessed on May 27, 2017. act.
  2. ↑ “economic problem”, Business Dictionary, Retrieved May 27, 2017. Edited.
  3. ^ a b c c d. Ahmed Al-Jayousi, The Economic Problem in Different Economic Systems, Jordan: Philadelphia University, p10, 12, 13, 14. Adapted.
  4. ↑ “scarcity”, Dictionary.com, Retrieved 27-5-2017. Edited.
  5. ^ a b t d. Hussein al-Tarturi (1411 AH), “The economic problem and how it is solved in the light of the Qur’an and the Sunnah,” Journal of Islamic Research, Issue 30, p. 172, 173, 174, 175, 176, 178, 179. Adapted.
  6. ↑ Surah Ibrahim, Verse: (32-34)

characteristics of the economic problem

Writing – on the date : – Last updated: 2022-05-15 00:06:01