Basic Concepts of Economic Structure

Basic Concepts Economic Structure

• Economic structure refers to how a society organizes itself to produce consumer goods and satisfy needs, from basic to superfluous ones.
• Marx defined economic structure as the mode of production; how societies organize to generate goods for consumption.
• The Mode of production consists of production relationships, including workers and owners of the production means like land, factories or companies.
• Productive forces made up of labor and the machinery are also part of production.
• In Mexico, it is the capitalist system, and the current model is neoliberalism.

Economic Structure Components

• Economic Structure is essential as a organizing structure for producing consumer goods.
• Infrastructure represents the physical support that enables the development of a country's productive activity.
• Infrastructure comprises communication routes, roads, railways, paths, bridges, airports, dams including irrigation systems and drinking water, drainage, housing, schools, hospitals, electric energy and ports
• Superstructure includes religion, morals, science, philosophy, art, law, and political and legal institutions.
• Superstructure's function is to reproduce ways of life and thought that perpetuate existing production relations.
• A country's economic development significantly depends on its infrastructure.
• Social life elements characterize the societal and economic structure.
• Social forms of consciousness, such as religion, science, philosophy, culture, and social institutions shape these elements.
• The superstructure depends on the economic conditions of each society, and is subordinate to the interests of economic groups that created it
• The economic structure determines the ideological superstructure of each historical period, while the superstructure regulates and legitimizes the relationships.

Economic Development

• Economic growth is a variable that provides information on the increase in production and economic development.
• Economic growth is employed to measure the success or failure of the government's economic policy.
• High economic growth presumably leads to welfare for a country's inhabitants.
• Economic development reflects economic growth is shown in the society's improved economic conditions.
• Economic development improves agricultural and industrial infrastructure.
• Development is observed through structural transformations and changes in the productive system.
• Economic underdevelopment is when countries have not overcome economic backwardness.
• Economic underdevelopment reflects in the low living standards, economic dependence, and high rates of demographic growth.
• Economic underdevelopment leads to unequal wealth distribution, technological dependence, migration, poverty, and social violence.

Economic Development Factors

• Human resources
• Natural resources
• Capital formation
• Business organization
• Technological changes and innovation

Economic Indicators

• Economic indicators are variables measured to evaluate, estimate, and show results against established goals over time.
• Main economic indicators include gross domestic product, life expectancy and mortality rate.
• Main economic indicators include human development index, sustainable welfare index and savings rate.
• Main economic indicators include unemployment rate, economically active population and Migration.
• Main economic indicators include per capita income and universal basic basket.

Economic Cycles

• Economic cycles are the recurring periods that characterize the capitalist system, with phases of recession and economic prosperity.
• The existence of an economic cycle in a recession includes people losing jobs with a hard time finding a new one.
• Once the economy starts recovering, it becomes easier to find employment
• When the economy expands, people can afford to choose where they want to work