Economic advancement is one of the greatest changes that the world has experienced. Economic systems have increased output efficiency. World economies are integrated due to the output surplus that resulted in to trade. The list of positive impacts could be very much longer but the modern economies have also given birth to different problems as well.
- Uneven development: There is a great difference between the economic efficiency of different countries all around the world. The demarcation is clear. The world is divided into rich and poor, developed and underdeveloped economies.
- Global Debt: Due to modern monetary policies, countries are inclined towards printing more money for their payments. Due to the declining value of currencies, the debt is growing day-by-day. Poor countries are relying on loans for the payment of their everyday needs and to service trade deficits.
- Environmental degradation: in the race of accelerating output, the industrial sector is exploiting the environment and not giving anything in return. The rule of capitalism has given rise to environmental problems like global warming. Non-renewable resources are being used in unsustainable ways.
- Unemployment: Modern economic systems have not solved the problem of unemployment. It exists everywhere. The monopolistic behavior of industries and irresponsible outcomes of the state is giving rise to the problem of unemployment.
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