The fundamental economic problem is related to the issue of scarcity because of limited resources and endless demands, society needs to find ways on how to produce and distribute theses relatively scarce resources. Free market economy allows for the production of goods and services according to supply and demand meaning prices are fixed by the law of suppy and demand. A command based economy is where the government determines what goods should be produced, how much should be produced and the price at which the goods will be offered for sale. However, a market based economy creates many problems like inequality of distribution. For instance the problem we have on the demand of rice in the philippines, the supply went low because business owner secretly hide sacks of rice causing it to be unequally distributed and other are priced higher. Thus, the government should intervene in the econimic decision making process. Karl Marx, a socio-political German theorist explained that class conflict and social stratification derive from economic factors or social relations produced by the mode of production. Thus, social progress is found in the allevation of economic life of man. Economic welfare of society is the manifestation of social justice.
The philippine economy at present is still at its poor state even with the new administration put into power by the people. There have been a lot of quantum changes for the last decade, up from the time when the country was colonized by various countries which are currently in power right now. There are some articles written by economists, political analysts and social scientist mentioning that a part of the reason why the philippines right now is in such poor state is due to the wasted air or assistance of the developed or industralized country.