Economic System Essay

Submitted By choiboi12
Words: 645
Pages: 3

Oct. 10, 2014-10-14 Michael Choi
Economic System
Part 1 Socialism Capitalism
Description of the system -an economic system in which the means of the production are either state owned or commonly owned and controlled cooperatively; or a political philosophy advocating such a system
-an economic system in which government sees to it that people work for the common good until they can be relied upon to do that on their own. -an economic system in which the means of production are privately owned and operated for profit, usually in competitive markets
-income in a capitalist system takes at least two forms, profit on the one hand and wages on the other
History of System -Socialism came into existence in the early 1900s
-Has its origins in the French Revolution of 1789 and the changes brought about by the Industrial Revolution, although it has precedents in earlier movements and ideas. Humanism in the 16th century put foward new ideas like equality, freedom of speech and democracy. -Capitalism in its modern form is usually traced to the Mercantilism of the 16th-18th Centuries.
-Capitalism started in Rome and the Middle East during the early Middle Ages.
-Capitalism became prominent in Great Britain in the 19th century during the Industrial revolution, The United States soon followed.
Key People -Henri de Saint-Simon: the founder of French socialism
-Francois Marie Charles Fourier: a French utopian socialist and philosopher
-Pierre Henri Leroux: French philosopher and political economist -Capitalists: business people who have acquired large amounts of money and use it to invest in business.
-German economists Werner Sombart: used the term capitalism to describe the production system
Similarities/Differences -Both acquired strong government support to survive
-Both despise free enterprise
-Socialism has never existed except on paper.
-Both require strong control over the general population
-Capitalism is a form of usury the leads to what is now called fascism
Who has control of markets -a world-wide society in which the means of production are held in common
-production would be organized along democratic lines by genuine cooperatives, with everyone working within a given productive unit doing so one a purely voluntary basis -productions are owned privately.
-the state intervenes in the economy to protect and advance the interests of large-scale businesses
Costs -government controlled socialist nation limits the freedoms and power of the people as well as limits the economy in the growing nations
-tougher to get…