Characteristics Of Economic Systems

758 Words2 Pages
bulb-icon

Recommended: Communism vs capitalism

Economic systems are varied in today’s world. Oxford Dictionaries defines an economic system as “a system by which a society or other structure is organized with regard to its economy” (n.d.). In laymen’s terms, it is a structure for using “limited resources” (Kelly, 2016). Economic systems have existed all throughout history and changes over time have left us with a few options. Currently, countries tend to operate under capitalism, socialism, communism, or mixed economies. We will detail them here.

America is a capitalist society. While in economics and business, capitalism refers to the economic system, the whole of United States society is informed and changed by the free market system. Dictionary.com defines capitalism as “an economic system in which investment in and ownership of the means of production, distribution, and exchange of wealth is made and maintained chiefly by private individuals or corporations” (n.d.). Capitalism is characterized by the motive for profits, little to no government involvement, fierce competition (which is good for consumers), and adaptability (Zucchi, 2014).

Individuals and corporations are, as we learn in economics, are not likely to make decisions that will be detrimental to them (Miller, 2012). Therefore, the entrepreneurial spirit drives the urge for …show more content…

Equal opportunity gives individuals the ability to ensure that they will be able to provide for themselves, along with the state providing for them. Less competition in the market can stagnate innovation but, these days, with the exponential technological advances, innovation is simply a given. Central planning is government oversight to promote fairness and equity for all. Socialist countries usually pay for their services using value added tax which is a much higher tax rate

Show More
Related

  • David M Kotz's The Rise And Fall Of Neoliberal Capitalism

    1092 Words  | 3 Pages

    An economic and political system in which a country 's trade and industry are controlled by private owners for profit, rather than by the state is known as Capitalism. Many components make up a capitalist society such as the factors of production are privately owned. The economic transactions take place in markets where buyers and sellers interacts, and many business and employees are free to pursue their own self interest. The United States is known to follow the ideals of a capitalism throughout the years but as many as 32 recessions have taken place in the last 150 years. The economy seems to be unstable and the question arises, why is capitalism so dynamic and unstable? In the novel “The Rise and fall of Neoliberal Capitalism”, David M Kotz analyzes and answers the many

    Read More

  • Economics

    596 Words  | 2 Pages

    The first type of economic system that they movie shows is a traditional system. A traditional economy is an economic system in which the allocation of scarce resources and other economic activity is the result of ritual habit or customs. In other words a traditional economy is a barter or trade system, everybody decides WHAT WHEN and FOR WHOM. When the video first starts the Mochans had to trade all over the island to acquire what needed. After a while they had enough of trading the chief decided to switch to currency instead of trade.

    Read More

  • Power Struggles in Capitalist Democracies and the Fate of American Labor Unions

    3479 Words  | 7 Pages

    To some, "capitalistic democracy" conjures up the picture of a utopia where the free market is accompanied by individual liberty and social justice. To others, however, the term is more like a paradox—despite tremendous economic power, the advanced industrial nations are not immune from the evils of socio-political inequality as well as economical disparity. Amongst the capitalist democracies of the world, it is an established and well-known fact that when compared with the advanced industrial countries in Europe, the United States has the worst condition of economical-political inequality and social injustice. Its government is the least progressive, and its social inequalities the most deplorable. To explain the condition in the U.S. today, both the universality of capitalistic democracies and the peculiarities the American system employs—as well as this system's political and historical development—must be examined and explored.

    Read More

  • Capitalism Dbq Analysis

    872 Words  | 2 Pages

    Economic systems are affected by the two opposing systems of capitalism and communism. They each can meet the needs of people; however, both affect the lives of people in good and bad ways, affecting industrialized nations and nations in the process of being industrialized. Capitalism is all about wealth and the wealth of people. Capitalism met the needs of the people because the right to property was created. You can own your own house, factories and land.

    Read More

  • Elliott Currie's View Of Crime In A Market Society

    542 Words  | 2 Pages

    A market economy that fails, to address the needs of at-risk children and adults. Currie feels Americans are so focused on the economy that there is no regulation, Americans also believe, it is a free market, and that individuals are responsible for their own failures or success. This type of economy is a system in which economic resolution and pricing of goods and services are determined and focused entirely by the aggregate of country’s citizens and business with little government intervening or central planning. This means private firms account for all production. Meaning consumers decide what should be produced, based off of what they have purchased.

    Read More

  • Dead Economists Summary

    1150 Words  | 3 Pages

    ... economic system, one that needs no interference, and needs to type of larger organization involvement.

    Read More

  • Communism: Karl Marx's Everlasting Political Legacy

    1232 Words  | 3 Pages

    Though Americans do still control their money if they are smart enough to use it, there are several catches. Karl Marx did get one thing right when discussing capitalism, or bourgeois. “By freedom is meant, under the present bourgeois conditions of production, free trade, free selling and buying. But if selling and buying disappears, free selling and buying disappears also” (Marx). Which is very true. The American capital system relies on supply and demand. Our nation needs buyers and sellers in order to stay a float. When concerning society, the American government requires its citizens to pay yearly taxes in order to keep the society running somewhat smoothly. Taxes, though unpleasant, are not the end of the world, they keep the government on its feet and help provide for the nation. Many believe that taxes getting raised make our nation more communist which is not necessarily true. In a communist country, people are allowed to be lazy and irresponsible without struggle, in a capitalist country, you must work hard for what you earn. One of the most famous capitalist financial experts in America, is a man named Dave Ramsey. He has become an expert in his field and helped many come to financial piece within a capitalist system. “If you don’t own the goal and it doesn’t come from your dream, then you won’t have the toughness to persevere when the going

    Read More

  • Philip Slater’s The Pursuit of Loneliness

    1053 Words  | 3 Pages

    A large part of this problem is that many Americans buy into the ploys of capitalism, sacrificing happiness for material gain. “Americans have voluntarily created, and voluntarily maintained, a society which increasingly frustrates and aggravates” them (8). Society’s uncontrolled development results in an artificial sense of scarcity which ensures “a steady flow of output” (78).

    Read More

  • Life Under Socialism Essay

    1372 Words  | 3 Pages

    Equal work, equal wages, equal food, equal opportunities, equal power. On the outside, a society where every one of its citizens was completely equal sounds and appears like a good thing, even a great thing. No one had too much power, everyone seemed to be happy, and most importantly everyone worked to better the community instead of themselves. This is what Socialism was portrayed as: a system in which everyone worked together to benefit the state. Contradicting this fabricated image, life under Socialism did not succeed in equality for men and women, and it caused people to do whatever necessary in order to gain some sense of individualism. While equality for all people in all aspects of life sounds appealing, it was an unachievable goal

    Read More

  • All Men Are Created Equal

    620 Words  | 2 Pages

    America is a largely organized country, but it is also a free enterprise country. People are allowed unlimited potential in our society. The way America is, it creates a large gap between the upper and lower class. These upper and lower classes are opposites and are different in attitude and way of life. Even though they are totally different sometimes one can experience both classes in their lifetime. The gap between upper and lower class are wide but there are bridges over this gap that link the classes and let people to determine their own future.

    Read More

  • Cold War's Impact on America Politically, Socially, and Economically

    1741 Words  | 4 Pages

    America has a capitalist economic system that allows private ownership of business and property. This freedom allows citizens the opportunity for financial success. All businesses and institutions of the Russian socialist economy were owned, regulated, and operated by the government.

    Read More

  • Cultural Common Ground Gets Harder To Come By Summary

    799 Words  | 2 Pages

    There really is not one uniform way of life in America. But if you look back on the past, you can definitely see some similarities. With the article, “What Is an American”, it explains what early life may have been for these new residents. “They receive ample awards for their labors ; these accumulated rewards produce them lands.” So early life here was simple and strived on working. But as the years progressed so did the people. By the nineteen-hundreds, Franklin D, Roosevelt had described life here with ease, using terms like, “ all bound together by hope of a common future.” He goes on to describe the ever-changing life with a boast about, “unity in language and speech”. Even today common life here is brought by these factors of similarities. We all share the love and pride we have for this place. Still, America has one difference, and that is cultures. “Live in a culture of multiple cultures” as briefly spoken by the article Cultural Common. Daily life here is usually different between all of us, but we still strive to make it amazing

    Read More

  • Capitalism in the US

    705 Words  | 2 Pages

    The United States of America is a great country. It is possibly the longest standing free nation in the history of the world. The founding fathers that constructed our form of government and the Constitution were genius minds. Our republic was founded with an economic system, which we call capitalism. Unfortunately, capitalism is under attack today in the United States. The U.S. must return quickly to a pure capitalist financial system or risk economic ruin.

    Read More

  • Capitalism: A Superior Economic System

    1629 Words  | 4 Pages

    First and foremost, a capitalist economic system motivates people by rewarding them for their skills and efforts that they put into their work (Deane). Promotions and pay raises are some examples of the rewards that people are able to receive if they put great effort into their work. However, if people exert average or small amounts of effort, chances are that the rewards that they receive will reflect on their lack of effort. The rewards that can be received inspire ambition and an avid desire in people to be successful. People will apply themselves and be determined to reach their highest potential in order to acquire great rewards. People who work hard to earn more money will typically cause them to experience a feeling of accomplishment and will often give them the means to for a higher standard of living (Burke). Having a society where people are motivated to work hard to succeed will result in a more successful economy. On the other hand, socialist economic systems offer little or no reward for people who really apply t...

    Read More

  • Microeconomics Reflection

    1401 Words  | 3 Pages

    There are two types of economic systems that a society may adhere to; which are polar opposites. The Command system, also known as communism or socialism. In a command economy, the government owns the majority of the resources, and all decisions for the society is made based on a central plan. The command system has been adopted by countries such as the Soviet Union, China and North Korea. This economic system is commonly used by countries under a dictatorship. Despite the negative aura surrounding a dictatorship this system does have its pros and

    Read More

More about Characteristics Of Economic Systems

Open Document