Economic Systems - created from Mind Map

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The most famous example of the capitalist system is the United States of America. Other countries use this system as well in order to help gain wealth such as Europe, Japan and Canada.

Socialism: In the socialist system all basic businesses are owned by the government so that they can distribute the money evenly. There are still small business owners but they are heavily taxed in order to keep equality among the people.

Communism: A economical and government system in which the government has almost all control over its people. The government makes decisions on where people can work, live and what religion they can practice.

The United States of America operates on a Free-market economy which is based on a capitalist economy but as a country has incorporated some socialist philosophies as well. The people have the freedom to choose where they work, live and if they want to own private property while the government still makes decisions on social security, minimum wage and other decisions that effect the economy.

Capitalism: In a capitalistic system most if not all types of products and distributions are owned by the individual and are created and ran for profit and the business people make decisions on what to offer, for how much and what to pay their employees.

There are many good things about the capitalist system. Some of the pros about being a capitalist country include creating wealth for business people, people have the choice to own private property and create their own business.

Just like every other economic system the capitalist economy still has its flaws such as wealth inequality, greed, criminal activity in order to obtain wealth and the freedom to fail.

There are many countries that use the socialistic economy. Mostly europe and South America with the most famous being Germany, France, UK and Italy.

Some of the benefits of a socialist economy includes social equality. The government essentially takes money from the wealthy and gives it to the poor through taxes. It also does many great things for the individuals because the government helps the people by giving free college education, free health and child care.

Just like the other systems, socialism has its problems. In a social system it makes it harder to be a small business owner or open a business because of the taxes that they are charged. A lot of the time the smartest people in the country leave in order to open their business in a capitalist country so they do not get taxed as much.

There are still a couple communist countries in the world today. The most well known are North Korea, Cuba and the remnants of the Soviet Union

The only benefits I could see from a communist economy is for the government. The government in this economy has total control and can put people where they feel there is a need and tax them high dollar amounts.

There are many cons to being a communist country. The people do not have a choice as to how or where they live, they do not have the ability to get wealthy, and the people do not get to choose what they do for work. This usually leads to the country having many financial issues especially when people refuse to pay their taxes.