Economic Systems Essay

936 words - 4 pages

Tanoy Sarkar Economic Systems 04/22/2014
Throughout history, nations or regions have supported different economic systems. Economic systems control the political economy, markets, consumer and public economics, national income, natural resources and other aspects. The economic systems lead the country towards its flourished and depraved situations. The systems also provide the type of business and government imposed on the societies and the country. Some of the economic systems are capitalism, communism and socialism. Capitalism is the system under which the means of production are privately owned and operated for profit. Communism is an economic system in which all the means ...view middle of the document...

In 1776, Adam Smith, the father of economics, wrote the book The Wealth of Nations which promoted laissez-faire ideas. Laissez faire was the policy that lets people make their own businesses and run it without government interference. With this new evolving technology, people started investing more and to gain more money, business owners sold stocks. As a result, the upper middle class significantly grew and professionals arose such as doctors, lawyers and other professions developed too. As the upper class and the middle class were highly benefiting from capitalism, the lower class was suffering because they had to work in factories and face harsh living and working conditions.
Socialism is mostly concentrated on the interests of society rather than the interests on the rights of the individual. During the Industrial Revolution, socialism was an economic system under which everyone one would own equal amount of land and there would be no large gap among the people in the society. The farms and business would belong to the people and this would improve the dangerous working conditions during this time period. Everyone would be paid the same and would fix the child abuses. Early Socialists, Utopians, wanted to create self-sufficient communities where work and property would be shared and if there is no wealth gap, there will be no fighting. If everyone was at peace, the communities would live in good conditions and everyone would be very happy. In contrast, Karl Marx promoted what is called Marxist Socialism in which he mentions that there will always be clashes between the wealthy capitalists and the proletariats, the working class. Eventually, the middle class will rise and overthrow the capitalist system and create their own society. This type of newly formed society will have people who have control over land, labor capital. This eventually led to the communist dictatorship.
Karl Marx, a German...

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