Economic System Essay

1934 Words Oct 28th, 2012 8 Pages
Microeconomics Paper: Economic systems
Yang Cong
Professor Memmos

Aug 1st, 2012
Table of Contents
1, Introduction of economic systems
2, the analysis of capitalism
3, Example of capitalism: the U.S.
4, the analysis of socialism
5, Example of socialism: China
6, the analysis of communism
7, Example of communism: North Korea
8, my favorite one is socialism
9, Conclusion

There are three main economic systems in the world which are capitalism, socialism and communism. Nowadays, most developed countries are capitalism and they have certified that capitalism is better; the greatest developing country which owns the second high GDP in the world, China, is socialism, it seems that socialism is not bad; only a few countries are
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There are no previous examples of innovation to tell people which are the right ways to innovate, that is why the government needs to intervene the economy of the whole country. Also, the unfair share between capitalist and laborer is another disadvantage of capitalism. The capitalist’s profit is the surplus value of laborer. Basically, it is very unfair because although the capitalists provide opportunities to laborers to help them make money, the laborers cannot get enough value which they have produced and the surplus values make capitalists become richer. This unfair thing makes the deep poverty gap.
The United States is the greatest economic giant in the whole world because of its strongest economic power. As the representative of capitalism, the United States has the highest GDP in the whole world. The capitalism has existed in the United States for a long time and improves its economy a lot. It encourages private capital to make more profits, and improve the level of technological innovation and productivity. Also, capitalism follows the laws of the market to maximize the mobilization of private investors and private enterprises. That is good to improve American production technology, labor productivity, and social wealth. Economic prosperity also makes social stability which falls unemployment, raises wages, and declines crime rates. Although many advantages of capitalism make American economy develop

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