Economic Systems

Economic Systems

1. Capitalism

   • The economic system where there is private ownership over the factors of productions. Those productions are controlled by companies that are formed; they own the labor. The owners also get their income from that ownership, which gives them the opprotunity to make a profit. They have the laws of supply and demand. It also has the idea that the best competitor remains (Amadeo,n.d).
     • The pros are that customers pay for what they want the most and the businesses provide what they want at the highest prices. Creativity is rewarded. Businesses are competitive so they make the best possible products (Amadeo, n.d).
       • The cons are that it doesn't provide for those who are not competitive, such as the elderly, children, disabled, and caretakers. There is no equal opportunity and it ignores pollution and climate change (Amaedeo, n.d).
   • The example of capitalism is New Zealand

2. Socialism

   • This economic system is where everyone owns the factors of production. Ownership is given by the elected government. It is a public corporation that is shared by everyone. The factors of production is value because of its usefulness. It takes into account the needs of individuals and social (Amadeo, n.d).
     • The pros of this system is that there is no exploitation to workers. It proved for those who cannot work. It eliminates poverty by giving access to health care and education. There is no discrimination. The natural resources are preserved (Amadeo, n.d).
       • The cons of this system has cooperative humans who work and there is no competition. This means that entrepreneurs have no footing in the society. Creativity is not rewarded. The government has all the power which can have them abuse it if they do not have the best interest of the people (Amadeo, n.d).
   • The example of this system is Sweden

3. Mixed Economy

   • The example of this economy is the United States
   • This economic system that combines the market, command, and traditional economics. It protects private property, free market, laws of supply and demand, and self-interest of individuals. Federal government safeguards the people and a large role in military, international trade, and transportation nationally. The government has a central plan that has the properties of the citizens (Amadeo, n.d).
     • The pros of the economy is that it distributes goods and services. It rewards efficient producers and encourages creativity. It invests in more businesses and fast mobilization of those businesses, and makes sure that those who are less competitive people receive care (Amadeo, n.d).
       • The cons of this economy is that it could have members who are less competitive have no governmental support, central planning can cause the country to go into debt. Th government may not protect the free market (Amadeo, n.d).

4. Communism

   • This economic system is where the government owns the factors of production. The central planners tell where people work, but are not forced. The proceeds of business would go to the workers. The land is public and rented, progressive income tax, and free education (Amadeo, n.d).
     • The pros of this economy is that there is mobilization of economic resources. The executive of massive projects. It also overrides self-interest (Amadeo, n.d).
       • The cons of this economic system is that it eliminates the free market. The government sets the prices of goods and services. There are shortages of one thing and surplus of another. The black market it created by the people (Amadeo, n.d).
   • The example of this economic system is China

5. The pros of the Mixed Economy are the same of the pros to the Capitalism and Socialism pros. The mixed economy distributes goods and services is the same as the capitalism. Those who are unable to work receive care like Socialism

6. The cons of Mixed Economy and Capitalism have the same cons. Those who are not competitive do not have the same support as those who do.

7. The United States is a Mixed Economy

   • It is important that we have an economic system because it contributes in how the country grows and what we get; such as products and food. It also gives labor to people. They work, earn money and then spend it. The economic system also decides who creates the goods and services. Either the companies or the government. It also contributes in how we gain health care and support from the government. People who cannot work can be supported by the government or in some cases by the people in the society. Resources are given to those who do not know how to make them. Over all, it is the production and distribution of the production that is important.