Economic System Essay

Submitted By dbdeleon
Words: 412
Pages: 2

The Economic Systems Analytical Framework focuses on three different types of economic systems: Pure Market Economy, “Mixed” Economy, and Pure Command Economy. These three systems show the role of law and the amount of government intervention on the private sector. In a Pure Market economy, there is absolutely no government intervention; no minimum wage, antitrust laws, agencies, and also no helping out businesses when they are in trouble. The government will not interfere in any monetary or financial markets. Then there is the Pure Command economic system where the government owns and controls every business and productive resources, such as land and capital. However neither of these two extreme types of systems is practiced in the world today. Though, countries such as North Korea and China come very close to a Pure Command Economy, they are not exactly there because the government does not absolutely control everything in their respective countries. On The other hand, the United States and Australia have one of the more freer economic systems but even still are in between, and thus are considered to have “Mixed” Economic systems. Furthermore, every country has some form of a “Mixed Economy. Depending on the country, there are governments which intervene more than others. In essence, there is an ever-changing mixture of business freedom and government regulation. In the United States: a country which many believe to be right in between a Pure Command and Pure Market , there has been times in its history where the government has had to intervene more than the usual. For example, as the Great Depression came, the government had to step in…