Three Economic Systems: Traditional, Command, And Market

The world is based around three economic systems. Traditional, command, and market. Each serves its own purpose and supplies its own set of rules and beliefs. These systems have more differences than similarities although all three have their own benefits and detriments. Traditional economic systems are primarily used in underdeveloped countries that would rather stick to custom ways of running the economy. Another reason a country could be pursuing the traditional way is because of lack of resources. Between all of the economic systems, traditional is least likely to gain profit or surplus. In a traditional economy, agriculture is more common which serves convenience to the farmers since they are able to eat what they grow. With traditional …show more content…
The government manages everything in the industrial process from businesses to equipment needed to operate a business. The government greatly protects their most valuable resources, leading them to the decision to take matters into their own hands and control the economy so they are able to make decisions about what is being used or produced, and how it is being distributed. The government also controls wages for workers and prices for resources. My initial thought about a government controlled economy was that it could be quite unfair, but the government is actually benefiting the population this way. The upside of the government regulating resources is that they usually make goods and services affordable for the population. A plus in a command economy is that most countries provide free health care and free education! In contrast to market, the government makes all of the decisions whereas in a market economy, the government welcomes and encourages feedback from the society as a whole. Comparison between traditional economy and command economy is evident in reference to agriculture. In a command economy, agriculture is one of the very few things run by