An Economy is “A system established in a country or region to handle the production and consumption of goods and services and the supply of money”. The purpose of establishing an economy is to ensure that all scarce resources are used efficiently to maximise on the welfare of individuals, through providing tangible goods and intangible services, however opinions differ on what course of action should be implemented. The three commonly know systems are ‘command’, ‘free market & ‘mixed’, however within this my focus will not be on the most widely used ‘mixed’ approach. My objective is to gauge of the two extremes, which would be the most viable option on a global scale.
A centralised command economy is “An economy in which production, investment, prices, and incomes are determined centrally by the state”, this is a system that was supported by the German philosopher & economist Karl Marx, this is essentially a form of communism. On the other extreme is the free market economy, also known as a capitalist system of production, where there is intervention from external sources, this form of control was heavily supported by the renowned ‘father of modern economics, Adam Smith’.
Karl Marx states ‘The worker does not necessarily gain when the capitalist …show more content…
These are the benefits of a command economy, from what I have researched this is the most optimistic and long-term solution to fixing global issues, however many would take a pessimistic approach and say that these can never happen as no-one would be able to moderate change at such a large scale, this is not entirely accurate, if all countries worked truthfully and in harmony, thinking of improving each other, we would become our own moderators fixing our economic issues and helping pave the way for a new renaissance to
A centralised command economy is “An economy in which production, investment, prices, and incomes are determined centrally by the state”, this is a system that was supported by the German philosopher & economist Karl Marx, this is essentially a form of communism. On the other extreme is the free market economy, also known as a capitalist system of production, where there is intervention from external sources, this form of control was heavily supported by the renowned ‘father of modern economics, Adam Smith’.
Karl Marx states ‘The worker does not necessarily gain when the capitalist …show more content…
These are the benefits of a command economy, from what I have researched this is the most optimistic and long-term solution to fixing global issues, however many would take a pessimistic approach and say that these can never happen as no-one would be able to moderate change at such a large scale, this is not entirely accurate, if all countries worked truthfully and in harmony, thinking of improving each other, we would become our own moderators fixing our economic issues and helping pave the way for a new renaissance to