INTRODUCTION:
In recent years different economic systems were introduced in the global economy, from which individual countries chose the most appropriate system that can be adopted. These systems each contribute to the smooth running of the global economy though they each have their own drawbacks.
The purpose of this discussion is to analyse economic systems that have been introduced into the global economy namely, capitalism, nationalism, communism and the mixed economic system. Different aspects are to be addressed in the discussion with regards to the four economic systems mentioned above such as, the characteristics of each system, its pros and cons and its relevance.
The discussion is started off with a distinction between the four economic …show more content…
the complete return of man to himself as a social being..." (Economic and Philosophical Manuscripts of 1844)
Many people don’t really agree with Marx, but are appreciative for the fact that he highlighted the selfishness in liberalism. Later in the assignment, thorough analysis of this economic system will take place. Characteristics of Communism:
Since now we understand where communism comes from and why? The next step is to find out what Communism entails of. Here below is the summary of the characteristics of Communism.
1. Class struggle
Communism strongly believes that human history is intertwined with economics and class struggle (Principles of communism; 2015) . It all began back in the early days where the community depended on what nature handed out to them. Private- ownership is not of utmost importance and E exists in its purest form.
2. Ending Private Ownership of Property and the Means of …show more content…
Benefits of Communism:
1. People are equal: nobody is looked down upon, no high or lower- middle class
2. Every citizen can keep their job: the factors of production are all owned by the government so that means their unemployment rate is low
3. There is eternally stable economic system: because of the constant government intervention, there is no market failure, therefore creating a constant return to scale ( same increase in input generates the same increase in output)
4. Strong social commodities are established: there are laws in place to regulate the country, creating allocative efficiency of resources ( consumption activities that correspond with productive activities)
5. Competition does not exist
6. Efficient distribution of resources
( Benefits of Communism;
In recent years different economic systems were introduced in the global economy, from which individual countries chose the most appropriate system that can be adopted. These systems each contribute to the smooth running of the global economy though they each have their own drawbacks.
The purpose of this discussion is to analyse economic systems that have been introduced into the global economy namely, capitalism, nationalism, communism and the mixed economic system. Different aspects are to be addressed in the discussion with regards to the four economic systems mentioned above such as, the characteristics of each system, its pros and cons and its relevance.
The discussion is started off with a distinction between the four economic …show more content…
the complete return of man to himself as a social being..." (Economic and Philosophical Manuscripts of 1844)
Many people don’t really agree with Marx, but are appreciative for the fact that he highlighted the selfishness in liberalism. Later in the assignment, thorough analysis of this economic system will take place. Characteristics of Communism:
Since now we understand where communism comes from and why? The next step is to find out what Communism entails of. Here below is the summary of the characteristics of Communism.
1. Class struggle
Communism strongly believes that human history is intertwined with economics and class struggle (Principles of communism; 2015) . It all began back in the early days where the community depended on what nature handed out to them. Private- ownership is not of utmost importance and E exists in its purest form.
2. Ending Private Ownership of Property and the Means of …show more content…
Benefits of Communism:
1. People are equal: nobody is looked down upon, no high or lower- middle class
2. Every citizen can keep their job: the factors of production are all owned by the government so that means their unemployment rate is low
3. There is eternally stable economic system: because of the constant government intervention, there is no market failure, therefore creating a constant return to scale ( same increase in input generates the same increase in output)
4. Strong social commodities are established: there are laws in place to regulate the country, creating allocative efficiency of resources ( consumption activities that correspond with productive activities)
5. Competition does not exist
6. Efficient distribution of resources
( Benefits of Communism;