The different emphasis placed by different societies about several goals and priorities to answer the three key economic questions has lead to the evolvement of four different economics systems which i will critically analyse in this assignment. Furthermore, i will be critically discussing South Africa as a mixed economy as to why it is characterized as a mixed economy and the suitability of the economic system for the current economic conditions.
“A government is not need to ensure the whole society’s welll-being” Adman Smith.
2.LITERARY REVIEW OF THE FOUR ECONOMIC SYSTEMS
2.1. Traditional Economic System:
The traditional economy is a system whereby the goods and and products created by the society are shaped by the customs, beliefs and tradition. It is one which is not very dynamic and there is none much of modification occurring . The individuals standards of living are static, they do not enjoy much financial or occupational mobility, conversely Dr Butler, G(2013:158) stated “ One advantage of a traditional economy is that each person has a function in society.”
2.2. Planned Economic System:
A planned economy is an economic system which is controlled by the state, hence the usage and distribution of available resources are embodied in a formulated by a central authority.Government officials play a role in he regulation of prices, wages and even the determination of who should be employed. The planned economy refers to a centrally planned economy despite the fact that it is based on either centralized or decentralized forms of economic planning. Dr Butler, G(2013:159) outlines the aim of central planning which he has explained as means to improve productivity and coordination by enabling planners to take advanta...
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Although the author does raise some very interesting and provoking questions in the beginning of the article, unfortunately, some of them are very difficult to answer, or just can’t be answered. While the article doesn’t solve any problems, it does raise awareness and creates some interesting connections with the present and the past. The overall question the author wishes to answer is "how can economists understand and explain the nature of societal change?"
Common Sense Economics: What Everyone Should Know About Wealth and Prosperity, written by James Gwartney, Richard Stroup, Dwight Lee and Tawni Ferrarini, explains the foundation of economics and how it all works in all aspects of our lives from the role of the government trickling down to personal credit cards and savings. This book was written with clear language for the audience to understand and comprehend the large amount of information within its condensed size. The authors’ target audience for this book seemed to be for those individuals wanting to learn the mechanics of economy including economic growth and stability. Gwartney separates his book into four parts: Part I, Twelve Key Elements of Economics, Part II Seven Major Sources of Economic Progress, Part Three Economic Progress and the Role of Government, and Part IV Twelve Key Elements of Practical Personal Finance.
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The distinguished in the nineteenth century and it’s collapse in the twentieth century have led to similar, though much slower and less obvious, process in the course of modern science. Today’s frantic development in the field of technology has a quality reminiscent of the days preceding the economic crash of 1929. The clearest evidence of it may be seen in such comparatively young sciences such as psychology and political economy. In psychology, one may observe the attempt to study human behavior without reference to the fact that man is conscious. In political economy, one may observe the attempt to study and device social systems without reference to man. Political economy came into prominence in the 19th century, in the era of philosophies post kantian disintegration, and no one rose to check its premises or to challenge its base. Political economist-including the advocates of capitalism-defined their sciences as the study of management or direction or organization or manipulation of “community’s” or nations resources. The author goes on to say that the European culture regarded material productions as work that should be done by slaves or serfs but not first class citizens. It must be remembered that the institution of private property, in the full, legal meaning of the term, was brought into existence only by capitalism. In the pre-capitalist eras, private property existed de facto but not de jure, i.e. by custom and sufferance, not by right or by law. In law and in principle all land belonged to the head of the tribe, the king, and was held only by permission, which could be revoked at any time. CAPITALISM, a term used to donate the economic systems that has been dominate in the western world since the breakup of feudalism. Fundamental to any system called capitalist are the relations between private owners of non-personal means of production (land mines, industrial plants, etc.... collectively known as capital) and free but capitalizes workers, who sell their labor services to employers. The resulting wage bargains determines the proportion in which the total products of society will be shared between the class of laborers and the class of capitalist entrepreneurs. Productive use of the “social surplus” was special virtue that enabled capitalism to outstrip all prior economic systems. Instead of building pyramids and cathedrals, those in command of the social surplus chose to invest in ships, warehouses, raw materials, finished goods and other material forms of wealth.
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Our lives are greatly affected by our culture, ecological environment, political environment and our economic structure. The overarching method of organizing a complex modern society relies heavily on the founding economic theories regarding method of production, method of organization, and the distribution of wealth among the members of. This paper, specifically deals with the views and theoretical backgrounds of two dominant theories of the past century, Keynesianism and Neo-liberalism. Our social economic order is product of the two theories and has evolved through many stages to come to where it is today. The two ideologies rely on different foundations for their economic outcomes but both encourage capitalism and claim it to be the superior form of economic organization. Within the last quarter of the 20th century, neo-liberalism has become the dominant ideology driving political and economic decisions of most developed nations. This dominant ideology creates disparities in wealth and creates inequality through the promotion of competitive markets free from regulation. Neo-liberal’s ability to reduce national government’s size limits the powers and capabilities of elected representatives and allows corporations to become much larger and exert far greater force on national and provincial governments to act in their favour. Hence, it is extremely important at this time to learn about the underlying power relations in our economy and how the two ideologies compare on important aspects of political economy. In comparing the two theories with respect to managing the level of unemployment, funding the welfare sates, and pursuing national or international objectives, I will argue that Keynesianism provides far greater stability, equ...
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...but after the war Blacks were cut off from economic empowerment because Boer racism became legally protected. Friedman’s identifications of the players in the struggle of late twentieth-century globalization applies to the players in South Africa around the time of the Boer War, but Friedman’s optimism is not confirmed by the facts. While South Africa became an increasingly industrialized society, certain social elements overpowered economic shifts to prevent the full empowerment of Blacks especially that Friedman predicts. The long-term outcomes in South Africa—the resurgence of Boer nationalism in the 1940s that brought apartheid, and the movement forty years later to end apartheid—reveal that racism and conservative political ideology were stronger forces than globalization and industrialization were in shaping the lives and futures for Blacks in South Africa.
McHugh, J. M., McHugh, S. M., & Nickels, W. G. (1999). Understanding business. (5th ed.). New York: McGraw-Hill.
The crucial importance and relevance of economics related disciplines to the modern world have led me to want to pursue the study of these social sciences at a higher level. My study of Economics has shown me the fundamental part it plays in our lives and I would like to approach it with an open mind - interested but not yet fully informed.
...could be debated that the African National Congress ‘s strategy is to build a “ mixed economy pointed toward socialism”. But the present mixed economy is not simple pointed toward capitalism. It is pointed toward the special South Africa form of capitalism which is based on apartheid, and the African National Congress’s aim is to build a mixed economy which turns over the economic basis and the cause of apartheid. That intend will involve economic restructuring on a scale corresponding to the post war restructuring of Europe.
For the passed decades questions came up about globalization impact on civilization such as, South Africa have been a concern to many people around the globe. Based on, agriculture, politics, business affairs, decisions making, animals, and environmental changes been at the frontline of discussion concerning this region. The purpose of this research wills examine the impact of globalization on this society that affects all spectrums from businesses to human begins lives, animals, and environment in this region. Also, the awareness of the financial growth is unstable and irregular across the South Africa regions. The monetary increase has been rigorous just in 11 rich nations, which do not include South Africa. While, 89 other countries represent 1.0 billion citizens or one quarter of the planet populations are economically poorer off than they were five or more years ago like South Africa. Sub-Saharan Africa requires greater focus on their poverty, so the issue is who needs come first poor or rich. In this research paper it will go more in details about these problems that South African faces each day to survive.
Layton, A. P., Robinson, T. J. C., & Tucker, I. B. (2012). Economics for today. South