There are so many reasons why we experience economic failures but somehow we come to realize that most of these things happen due to some actions that we find as normal. We complain so much when things are going south in our economy but then we never make intentional plans to help the economy in anyway we can. Well, the economy is owned by those who contribute to it and from that angle, it is evident that everyone owns the economy because you are either a producer, a seller or consumer.
In the world at large today, we've come to realize that so many countries economies are failing on a daily basis and my country seems to be leading up front. Well, let's dive in deeper to this discussion. First, let's discuss some of the reasons why our economy fails. Some of these reasons are so evident that you don't even need anyone to tell you for you to know it.
❌ Inflation - The effect of inflation in a failed or failing economy can't be overemphasized. In our world today, we've come to see that the price of things are no longer stable. With every opportunity, the prices of goods and services are easily skyrocketed without a second thought. This happens mostly because of selfish gains.
❌ High interest rate - In addition to an increase in the price of things, there is the problem of high interest rate on things. So many people go into taking loans to maybe make life better for themselves but not all of them get lucky enough to offset those loans and it makes it impossible for them to invest more.
❌ Debt increases - Since it's hard to payoff existing loans due to high interest rate, it leads to being indebted. For obvious reasons, it would be so hard for anyone in debt to do better for themselves economic wise and that in turn affects the economy.
❌ Currency crisis - This is what my country is experiencing at the moment. Our currency just keeps losing it's value and we now have more demand for it even as people are also more conscious of how they spend it.
❌ Loss of confidence - The more things keep going south, the more people loss their confidence in such an economy and they are no longer interested in investing their time to making things better. Most times they look for a way to move out of that particular economy.
❌ Hyperinflation - In some worst cases, it's even hard for the government to control the price of goods and services and this is a really big chaos in any countries economy because anyone can sell anything at any price they wish to.
There are so many other reasons why economy fails but these are just the ones that I can easily relate with because that's what is affecting my country more at the moment.
It's easy to identify a failing or a failed economy if one or all of these points are evident. After looking at of these things I've mentioned, it totally fits into the situation of my country and it's totally certain that my country's economy is failing (just trying to be hopeful). I'm not sure how it can be helped because most people have already lost their confidence in the country's economy getting better.
Most businessmen and women are becoming selfish by the day and they refuse to see the effect of their actions on the economy. They hardly ever pay the right wages and salaries to those who work for them but yet make sure to use those people to keep making their businesses grow. Well, it's good that they are growing their businesses but the fact that they also cheat their workers to keep filling their own pockets is something that indirectly affects the economy.
The more people are paid less, the more it becomes hard for an economy to get better. And that's why the economy in other continents are a lot better to an extent than some countries in Africa and that's one major reason why so many people wish to migrate to those countries. Now more than 60% (or more) of Nigerians are already considering moving out of the country and more than 25% have successfully moved out.
Now these Nigerians are helping other countries economy instead of theirs but then we can't completely blame them because the government has failed to identify these problems and give adequate solutions to them. In years to come, more people will continue looking for ways to go find greener pastures in other places and it won't be a surprised at all because the economy here in Nigeria has failed to a great extent.
The truth is, now we are just watching and hoping that things will get better even though we are still in doubt of how that is going to happen. When economic fails, nothing ever goes right again because it leads to so many other underlying problems as well.
This is my response to the challenge postingspree by 