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Types of economic systems Lubabah Hasan - Coggle Diagram
Types of economic systems
Lubabah Hasan
feudal system
Elements of the feudal system:
Feudal lord: A nobleman is the owner of agricultural land.
Allotted land: the land owned by the feudal lord and granted to the peasants in plots to work with and cultivate.
Subsidiary: The farmer who was appointed by the feudal lord to work the agricultural land.
Disadvantages of the feudal system
Imposing strict and unjust laws on the people, especially the slave peasants working for the feudal lords.
The feudal lord owned the bulk of the crops earned by his slaves, as well as the livestock.
Work according to the forced labor system, which is the slaves working for the feudal lord for several days without pay. :
the imposition of joining the feudal lord's army in the event of a war or conflict in which the lord was one of the parties.
In which a group of people in the community own agricultural land, which was the primary means of production at that time. The peasants were exploited to work in agriculture. The reason why it is called a feudal lord is due to the deduction of vast areas of land and their possession by the feudal lords.
capitalist system
Characteristics of the Capitalist System:
Individual private property.
Freedom of the economy, which includes freedom of production, consumption, disposal, choice of profession, and movement.
The existence of a profit motive that drives economic activity.
Non-interference of the state in economic affairs.
A system based on free labor and free profit, and rejects the idea of centralization in general economic work.
Disadvantages of the capitalist system:
It leads to more inequality in the distribution of income and wealth.
The rise of monopolistic corporations.
The emergence of sharp economic fluctuations.
Competition has positive effects, but on the other hand, it has many negative effects, including the exorbitant expenses for advertising.
socialist economic system
Disadvantages of the socialist system:
Neglecting the principles of individual ownership and economic freedom.
Reliance on the central planning apparatus to take daily economic decisions, which leads to a bureaucratic apparatus.
Ignoring the economic, social and religious aspects.
The socialist system is a system based on the principle of social partnership and adopts the idea of public ownership that prevails over private ownership and the control of the public sector's overall investment systems.
Characteristics of the socialist system:
Public ownership of the elements of production.
Collective satisfaction of needs, not for profit.
Presence of a central planning device.
Introduction:*
“We cannot realize financial reconstruction and enhance social security without a strong economy”, Yoshihide Suga. The economy is one of the most important pillars of societies. These types of economies decide how countries generate income and how its citizens are productive. In all, There are three main economic systems: Feudalism, Capitalism and Socialism.
In conclusion, The positives and negatives aspects led to the extinction of the feudal system, but the capitalist and socialist systems still exist until now. The capitalist is more prevalent in the world than socialism, but under both the world is trying to find its way to prosperity and material stability.