Economy ..noun
the wealth and resources of a country or region, especially in terms of the production and consumption of goods and services.
An economy (from Greek οίκος – “household” and νέμoμαι – “manage”) is an area of the production, distribution, and trade, as well as consumption of goods and services by different agents
- : the system of how money is made and used within a particular country or region. A region’s economy is connected with things like how many goods and services are produced and how much money people can spend on these things.
There are four different types of economies; traditional economy, the market economy, command economy and mixed economy. Each type of economy has its own strengths and weaknesses. Jun 3, 2019
1. Traditional Economic System
The traditional economic system is the most traditional and ancient type of economy in the world. Vast portions of the world still function under a traditional economic system. These areas tend to be rural, second or third-world, and closely tied to the land, usually through farming. In general, in this type of economic system, a surplus would be rare. Each member of a traditional economy has a more specific and pronounced role, and these societies tend to be very close-knit and socially satisfied. However, they do lack access to technology and advanced medicine.
2. Command Economic System
In a command economic system, a large part of the economic system is controlled by a centralized power. For example, in the USSR most decisions were made by the central government. This type of economy was the core of the communist philosophy.
Since the government is such a central feature of the economy, it is often involved in everything from planning to redistributing resources. A command economy can create a healthy supply of its resources, and it rewards its people with affordable prices. This capability also means that the government usually owns all the critical industries like utilities, aviation, and railroad.
3. Market Economic System
In a free market economy, firms and households act in self-interest to determine how resources get allocated, what goods get produced, and who buys the goods. This is opposite to how a command economy works, where the central government gets to keep the profits.
There is no government intervention in a pure market economy (“laissez-faire“). However, no truly free market economy exists in the world. For example, while America is a capitalist nation, our government still regulates (or attempts to control) fair trade, government programs, honest business, monopolies, etc.
In this type of economy, there is a separation of the government and the market. This separation prevents the government from becoming too powerful and keeps their interests aligned with that of the markets.
5. Social Economic System-jf29 thinking aloud
An economic system that has the welfare of humanity FIRST which is meeting the needs of people. Such as humanity being provided with a minimum income to be safe, Health Care, Disable Persons (forever & temporarily cared for), Retirement, catastrophes met (personal or community or natural), and old age needs to be met. The Mixed Economic System is the vehicle used to accomplish this.
The people’s decisions are made with the welfare of human beings first not the ability to accumulate materiality in an excess individual human. Words such as Free Market are not goals, they are a vehicle. Co-operation is noticing and is encouraged over the competition with an understanding that a team can accomplish more than an individual.
I suspect economy is not the correct word to describe a practice that meets the need of humanity. I also suspect that divisions are based on nationalism, geography, commonality, ethnicity, or any kind of grouping other than the care of humanity. I am not sure that democracy is the word to use in the accomplishment of a humane social caring practice.
A practice that I witness with interest is the NASA teams that launch spacecraft for well over 50 years. In the early, after the moon landing, these teams had a 50% failure/success rate. The point is the information was used on success and failure as data of value. The team did not have winners and losers they had valuable data that they teamed used for improvement, moving together toward that 99% success rate.
The team was not looking for profit. They were looking for a 99% success rate.
Observations:
- Profit, as a goal, is a practice that is not aimed at the care of humanity.
- The most important part of the USA constitution is the Bill of Rights.
- I do not think a “losers and winners” practice will effectively care for the needs of humanity.
- A market economy will always work at the expense of people.