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Economic Systems (TRADITIONAL (Native…
Economic Systems
TRADITIONAL
Native American economies before Europeans immigrated to America. Their small communities protected them from smallpox but poaching, war, and genocide destroyed them over time.
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Disadvantages
Limit population growth, since the economy is vulnerable to changes that occur in nature, such as the weather. Other economies use up resources that this system of economy needs.
Economic system that relies on customs, history, and traditions.
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Advantages
People don't rebel, since this system is typically centered around a tribe or family. Members know their place, and what to contribute. Aren't as destructive to the environment as other economies
COMMAND
Production, investment, prices, and incomes are determined entirely by the government
Advantages
Can execute massive projects, meet more social goals, and create industrial power
Disadvantages
No career freedoms; people are told which jobs to have. Often times there are too many of one type of product, and not enough of another type. Discourage innovation.
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MARKET
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Hong Kong has a market economy. It has low taxation and is highly dependant on international trade and finance. Hong Kong has been ranked the world's freest economy.
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Economic system in which the people make major exonomic decisions. People are free to do as they please.
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Is based on competition, which is hard for people who can't compete, like the elderly, and disabled.
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People who take care of these people are also at a disadvantage, because they are focused on care-taking, rather than competing.
Society reflects the values of "winners," or wealthy business owners, rather than people from low-income families
SOCIALISM
Socialism is an economic system where everyone in society equally owns the factors of production. The ownership is acquired through a democratically elected government.
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It does not address those within society who are competitive, not cooperative.
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It struggles to be as innovative as a capitalistic society because it doesn't reward people for being entrepreneurial.
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