An economic system is the production system, the allocation of resources and the distribution of goods and services within a particular society or geographic region. This includes the combination of various institutions, institutions, entities, decision-making processes and consumption patterns that comprise the economic structure of a particular society. Thus, the economic system is a type of social system. The way production is related concept. All economic systems have three basic questions to ask: what to produce, how to generate and how much quantity and who receives the output of production.
The study of the economic system includes how these institutions and institutions relate to each other, how information flows between them and the social relationships in the system (including property rights and management structures). The analysis of the economic system has traditionally focused on the dichotomy and comparison between the market economy and planned economy as well as the difference between capitalism and socialism. Furthermore, the categorization of the economic system is expanded to include topics and other models that are inconsistent with traditional dichotomies. Today the dominant form of economic organization at the world level is based on a market-oriented mixed economy.
The economic system is a category in the Journal of Economic Literature classification code which includes the study of the system. One area that crosses them is the comparative economic system, which belongs to the following subcategories of different systems:
- Planning, coordination and reform.
- Productive companies; factors and product markets; price; population.
- Public economy; financial economics.
- National income, products and expenses; money; inflation.
- International trade, finance, investment and assistance.
- The consumer economy; prosperity and poverty.
- Performance and leads.
- Natural resources; energy; living environment; regional studies.
- Political economy; legal institutions; right of ownership.
Video Economic system
Components
There are several components to the economic system. The structure of economic decision-making determines the use of economic input (factors of production), the distribution of output, the level of centralization in decision-making and who makes this decision. Decisions may be made by industry boards, by government agencies, or by private owners. The economic system is the system of production, the allocation of resources, the exchange and distribution of goods and services within a particular society or geographical region. In one view, every economic system is an attempt to solve three fundamental and interdependent problems:
- What goods and services will be produced and how many?
- How are goods and services manufactured? That is, by whom and with what resources and technology?
- For whom goods and services are produced? That is, who enjoys the benefits of goods and services and how the total products are distributed among individuals and groups in the community?
Every economy is a system that allocates resources for exchange, production, distribution and consumption. This system is stabilized through a combination of threats and beliefs, which is the result of institutional arrangements. The economic system has the following institutions:
- Method of control over factors or means of production: this may include ownership, or ownership of, means of production and therefore may result in claims to proceeds from production. Production tools may be privately owned, by the state, by those who use them, or are co-owned.
- Decision-making system: This determines who is entitled to take decisions on economic activity. An economic agent with decision-making power can create binding contracts with each other.
- Coordination mechanism: This determines how information is obtained and used in decision making. The two dominant forms of coordination are planning and markets; planning can be decentralized or centered, and two coordination mechanisms are not mutually exclusive and often complementary.
- Incentive systems: This induces and motivates economic agents to engage in productive activities. It can be based on material rewards (compensation or personal interest) or moral demands (eg, social prestige or through a democratic decision-making process that engages those involved). The incentive system can encourage specialization and division of labor.
- Organizational form: there are two basic forms of organization: actors and regulators. Economic actors include households, work gangs and production teams, companies, joint ventures and cartels. The economic governing organization is represented by state and market authorities; the latter may be a private or public entity.
- Distribution system: This allocates the proceeds from productive activities, which are distributed as income among economic organizations, individuals and groups in the community, such as property owners, workers and non-workers, or the state (from taxes).
- The mechanism of public choice for legislation, establishing rules, norms and standards and taxation. Typically, this is the responsibility of the state, but other ways of collective decision making are possible, such as the chamber of commerce or the workers' council.
Maps Economic system
Typology
There are some basic questions to be answered in order for the economy to proceed satisfactorily. The problem of scarcity, for example, requires answers to basic questions, such as what to produce, how to produce it and who gets what it produces. The economic system is a way of answering these basic questions and different economic systems answer it differently. Many different goals can be seen as desirable for the economy, such as efficiency, growth, freedom and equality.
The economic system is generally segmented by their proprietary regimes for production tools and by their dominant resource allocation mechanisms. The economy that combines private ownership with market allocation is called "market capitalism" and the economy that combines private ownership with economic planning is labeled "command capitalism" or self-organism. Likewise, systems that combine public or cooperative ownership of the means of production with economic planning are called "socialist planned economies" and systems that combine public ownership or cooperate with markets are called "market socialism". Some perspectives build this basic nomenclature to consider other variables, such as a class process in an economy. This has led some economists to categorize, for example, the Soviet economy as state capitalism based on the analysis that the working class is exploited by party leadership. Instead of looking at nominal ownership, this perspective takes into account the form of organization within the enterprise economy.
In a capitalist economic system, production is done for personal gain and decisions regarding investment and allocation of input factors are determined by the business owner in the factor market. Production tools are mainly owned by private companies and decisions on production and investment are determined by private owners in the capital market. The capitalist system ranges from laissez-faire , with minimal government and state-enterprise regulations, to regulated and social market systems, with the aim of improving market failures (see economic intervention) or complementing private markets with social policies for promote equal opportunities (see welfare state), respectively.
In the socialist economic system (socialism), production for use is done; decisions on the use of production equipment are adjusted to meet economic demand; and investment is determined through economic planning procedures. There are various proposed planning procedures and ownership structures for socialist systems, with a common characteristic among them is the social ownership of the means of production. This may take the form of public ownership by all societies, or ownership cooperatively by their employees. The socialist economic system that displays social ownership, but is based on the process of capital accumulation and capital market utilization for the allocation of capital goods among social-owned enterprises under subcategories of market socialism.
The mechanism of allocation
Basic and general economic systems that are segmented by allocations are:
- The market economy ("hands-off" system, such as laissez-faire capitalism)
- A mixed economy (a hybrid that combines several aspects of a planned market and economy)
- The planned economic system ("hands on", like state socialism, also known as "command economy" when referring to the Soviet model)
- Traditional economics (a common term for an older economic system)
- Economic participatory (the system in which the production and distribution of goods is guided by public participation)
- Economic rewards (where an exchange is made without an explicit agreement for a direct reward or future reward)
- Barter economy (where goods and services are directly exchanged for other goods or services)
- The post-scarcity economy (a hypothetical form in which resources are not scarce, like Karl Marx's concept of communist society)
Type
Capitalism
Capitalism generally displays private ownership of the means of production (capital) and the market economy for coordination. Corporate capitalism refers to a capitalist market characterized by the domination of hierarchical corporations and bureaucracy.
Mercantilism was the dominant model in Western Europe from the 16th to the 18th centuries. It encouraged imperialism and colonialism until economic and political change resulted in global decolonization. Modern capitalism has chosen free trade to take advantage of increased efficiency because of its national comparative advantage and economies of scale in larger and more universal markets. Some critics have applied the term neo-colonialism to a power imbalance between multinational corporations operating in the free market vs. colonialism. people who seem poor in developing countries.
Mixed economy
There is no precise definition of a "mixed economy". Theoretically, it could refer to an economic system that combines one of three characteristics: public and private industry ownership, market-based allocation with economic planning, or free market with state intervention.
In practice, "mixed economy" generally refers to a market economy with substantial state and/or public sector interventions in addition to the dominant private sector. In fact, a mixed economy is more inclined towards one end of the spectrum. Leading economic models and theories that have been described as "mixed economies" include the following:
- Georgisme - rent socialized on land
- Mixed economy
- American School
- Dirigism
- Indicative planning, also known as a planned market economy
- Japanese language system
- Nordic Model
- Progressive utilization theory
- Social corporatism
- The social market economy, also known as Soziale Marktwirtschaft
- The socialist market economy
- State capitalism
Socialism
The socialist economic system (which all display the social ownership of the means of production) can be shared by their coordination mechanism (planning and market) into the planned socialist and socialist system of the market. In addition, socialism can be divided according to its property structure between those based on public ownership, workers or consumer co-operatives and joint ownership (ie non-ownership). Communism is the hypothetical stage of socialist development articulated by Karl Marx as "second stage socialism" in the Gotha Program Criticism, in which the economic output is distributed on the basis of necessity and not just on the basis of labor contributions..
The original conception of socialism involves the replacement of money as a unit of calculation and the overall monetary price with the calculation in the form (or valuation based on natural units), with business and financial decisions replaced by technical techniques and criteria for managing the economy.. Fundamentally, this means that socialism will operate under different economic dynamics rather than capitalism and the price system. Then the model of socialism developed by neoclassical economists (mainly Oskar Lange and Abba Lerner) is based on the notional price usage derived from the trial and error approach to achieve market clearing prices on the part of the planning agency. These socialism models are called "market socialism" because they include roles for markets, money, and prices.
The major emphasis of a planned socialist economy is to coordinate production to produce economic output to directly meet economic demand as opposed to the indirect mechanism of the profit system in which satisfactory needs are lower than the pursuit of profit; and to advance the productive forces of the economy in a more efficient manner while immune to perceived systemic inefficiencies (cyclical processes) and overcapacity crises so that production will be subject to the needs of society as opposed to commanded around capital accumulation.
In a pure socialist planned economy involving different resource allocation processes, production, and means of measurement, the use of money will be replaced by different measures of value and accounting tools that will manifest more accurate information about an object or resource. In practice, the economic system of the former Soviet Union and Eastern Bloc operates as a command economy, featuring a combination of state-owned enterprises and central planning using the material equilibrium method. The extent to which this economic system reaches socialism or represents a viable alternative to capitalism becomes a debate.
In orthodox Marxism, the mode of production is tantamount to the subject of this article, which determines with the superstructure of the whole relation of a particular culture or stage of human development.
Other aspects
Corporatism refers to an economic tripartite involving negotiations between business, workers and state interest groups to establish economic policy, or more commonly to assign people to political groups based on their job affiliation.
Certain subsets of an economy, or goods, services, production techniques, or certain moral rules can also be described as "economies". For example, some terms emphasize a particular sector or externalization:
- The circular economy
- The collectivist economy
- The digital economy
- Green economy
- The information economy
- Internet economy
- Economic knowledge
- The natural economy
- Virtual economy
Others emphasize a particular religion:
- Arthashastra - Hindu economy
- the Buddhist economy
- Distributism - the Catholic ideal of a "third way" economy, featuring more distributed ownership in a mixed economy
- Islamic Economics
Economic evolution
Karl Marx's economic development theory is based on the premise of a thriving economic system. In particular, in his view during the history of superior economic system will replace the lower. The "inferior" system is attacked by "internal contradictions" and "inefficiencies" that make them "impossible" to survive in the long term. In Marx's scheme, feudalism is replaced by capitalism, which will eventually be replaced by socialism. Joseph Schumpeter had the concept of evolution of economic development, but unlike Marx he did not emphasize the role of class struggle in contributing to qualitative change in the mode of production economy. In the history of the next world, communist countries that are operating according to Marxist-Leninist ideology have either collapsed or gradually reformed their centrally planned economy toward a market-based economy, for example with perestroika and the dissolution of the Soviet Union, China's economic reform and? i M? I'm in Vietnam.
The mainstream of evolutionary economics continues to study economic change in modern times. There is also a renewed interest in understanding the economic system as an evolutionary system in the emerging field of economic complexity.
Context in society
The economic system can be regarded as part of the social system and hierarchically the same as the legal system, political system, culture and so on. There is often a strong correlation between certain ideologies, political systems and certain economic systems (for example, considering the meaning of the term "communism"). Many economic systems overlap in various fields (for example, the term "mixed economy" can be debated to include elements of various systems). There are also separate hierarchical categorizations.
Political ideology
Anarchist and libertarianism
Different types of anarchism and libertarianism support different economic systems, all of which have little or no government involvement. These include:
- Left wing
- Anarcho-communism
- Anarcho-syndicalism
- Anarcho-socialism
- Right wing
- Anarcho-capitalism
- Libertarianism
- lierbarian communism
- Libertarian socialism
- Syndicalism
List of economic systems
- Autogestion
- Capitalism
- Communism
- Distributism
- Fascial socialization
- Feudalism
- Hydraulic despotism
- Inclusive democracy
- Mercantilism
- Mutualism
- Network economy
- Non-property system
- Palace economy
- Participatory economy
- Potlatch
- Progressive utilization theory (economic PROUTIS)
- Proprietism
- Social Credits
- Socialism
- Syndicalism
See also
References
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Further reading
- Richard Bonney (1995), Country Economic and Financial System , 680 pp.
- David W. Conklin (1991), Comparative Economic System , Cambridge University Press, 427 pp.
- George Sylvester Counts (1970), Bolshevism, Fascism, and Capitalism: An Account of Three Economic Systems .
- Robert L. Heilbroner and Peter J. Boettke (2007). "Economic System". The New EncyclopÃÆ'Â|dia Britannica , v. 17, p. 908-915.
- Harold Glenn Moulton, Organization of Finance and Economic Systems , 515 pp.
- Jacques Jacobus Polak (2003), International Economic System , 179 pp.
- Frederic L. Pryor (1996), Economic Evolution and Structure: 384 pp.
- Frederic L. Pryor (2005), Economic System of Feed Society, Agriculture and Industry , 332 pp.
- Graeme Snooks (1999), Global Transition: A General Theory , PalgraveMacmillan, 395 pp.
External links
- "Overview of Video Systems Economy" by Thinkwell.
- "VSC Study Social Studies".
- Term-Culture "Anthropology".
- "Economic System", a reference journal for market analysis and non-market solutions by Elsevier since 2001.
- "Economic System" by WebEc, 2007.
Source of the article : Wikipedia
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