Types Of Economic Systems Flashcards
Welfare state
- the government assumes a larger range of responsibility
- management of the economy
-social safety net:
Social security, healthcare, and the assumption of public ownership of a large portion of industry
-U.S.A., Britain, and Germany
Corporatism
- government shapes/guides the actions of…?
- interest groups triumph over…?
- groups aren’t in conflict
- different institutions of labor and capital are licensed by, and operate under…?
- closely related to…?
- government shapes/guides the actions of labor and capital for social good
- interest groups triumph over the individual
- groups aren’t in conflict
- different institutions of labor and capital are licensed by, and operate under the state
- closely related to fascism
Types of command economies?
A central authority makes most of the economic decisions about production, distribution, and consumption
Communism, socialism, fascism
Communism
- each person contributes to society to their own ability and take based on their needs
- government owns all land and capital
- government regulates production and distribution
- NO social classes. Everyone is equal
- NO private property
Socialism
- same as communism except it has social classes!
- strict government regulation of production and distribution, so there will be more equality
- fairer distribution of wealth desired
- Marx believed that communism would eventually replace socialism, socialism would be a transition to communism
- marzian believed the start of socialism is characterized by the continued existence of scarcity
Fascism
Triumph over interest of people, both at the level of corporation and state
- combines monopoly capitalism, private property, and a strong dictator central government
- people have NO power, government is master
- state= dominant in ALL aspects of life
- all industries organized under state control… Corporations responsible for allocating output among members, fixing prices, and regulating wage.
Monopoly=less efficiency
Capitalism (pure market economy)
- no government intervention
- Lassie Faire, supply and demand
- people are allowed to own property
- “free enterprise”, production owned by the people
- limitation of coercion
- outcomes of the economy are determined by the people
Finance capitalism and imperialism
- used monopoly to control the markets
- small groups of banks can dominate the system
- extend their power by military force to colonize, spread ideology
- U.S. 13 colonies
Soviet communism
- social ownership of property and central planning of the..?
- “democratic centralism”?
- communist party represented true interest of the..?
- party controls ????? function
- has a central…?
-social ownership of property and central planning of the economy
-limited group of people control all political, social, and cultural life
“democratic centralism”
- communist party represented true interest of the working class
- party controls state function
- has a central government
Feudalism
- coercion is the dominant mode of incentives
- share cropping was commonly practiced
- monarch and nobility controlled important economic decisions
- moral incentives by society and church
- nobility were consumers
- surplus went to castles, churches, and military.. Not for capital improvements
- peasants did not own land
- at this time in history, Western Europe separated itself from Venice
- no trade, because Venice was the main commercial activity
- foundation of slavery was changed into what we call the feudal system after the collapse of the western Roman Empire
Mercantilism
Francois Quesnay disagreed with the mercantilism belief that wealth was from industry and trade
- want more exports than imports
- self-sustain, efficient
- trade generates wealth
- wanted more gold/silver in the country (home)
- state involvement in developing national economy (establish industry, import substitution, etc,)
- balance of employment
- maximizing value added
Physiocrats
-wealth came from the land
-taxes should be paid by the landowners, not the people who work the land
nobles lifestyle skewed the distribution of income
-only land could produce a surplus
