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.
4. Mixed Economic System
Is a combination of traditional and market.
Thinking Aloud: An Economic System Focused on Humanity’s Welfare
An effective economic system should prioritize the welfare of humanity by meeting the essential needs of all individuals. This includes providing a minimum income for safety, access to quality healthcare, support for individuals with disabilities (whether permanent or temporary), reliable retirement options, and resources for managing personal or community catastrophes. A mixed economic system could serve as the vehicle for achieving these goals. In this model, decisions would be based on fostering human welfare rather than prioritizing excessive material accumulation for individuals. Cooperation, rather than competition, is key; teamwork has the potential to achieve far more than individual efforts.
I suspect that “economy” may not be the best term to describe a practice that truly addresses human needs. Decisions are often influenced by nationalism, geography, commonality, ethnicity, or other affiliations that may detract from the overarching goal of caring for humanity. While I question whether “democracy” is the appropriate term for a humane social practice, I believe that a Bill of Rights is essential for ensuring the well-being of the people.
An example of effective collaboration can be observed in NASA teams, which have been launching spacecraft for over 50 years. In the early days, following the moon landing, their success rate was around 50%. The key takeaway is that both successes and failures provided valuable data. These teams focused on gathering insights rather than labeling results as winners or losers, and they used this information to improve their efforts, ultimately striving for a 99% success rate. Their goal wasn’t profit; it was excellence in performance—a prime example of cooperation rather than competition.
Further reflection leads me to consider that profit, as a primary objective, does not align with the goal of caring for humanity. Capitalism, particularly when unregulated, often fails to meet the collective needs of the population. A progressive taxation system, which once had the potential to support a more humane society, could bridge that gap.
The most vital component of the U.S. Constitution is the Bill of Rights, which does not endorse a profit-driven economic system. I don’t believe that an economy based on ‘winners and losers’ can adequately care for the needs of all people. A market-driven economy frequently operates at the expense of individuals’ well-being. It is crucial that people come before profit; implementing a progressive taxation system is one way to make this a reality. In a profit-driven framework, those with wealth can hire lobbyists to shape the rules in their favor.
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 (permanently or temporarily cared for), Retirement, and Catastrophes, (personal or community are met together).
The Mixed Economic System could be 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 for the individual human. Co-operation is a solution not competition. A team can accomplish more than an individual.
I suspect economy is not the best word to describe a practice that meets the need of humanity. I also suspect that decisions 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, but the Bill of Rights is a requirement for the good of the people.
A practice that I witness with interest is the NASA teams that have been launching spacecraft for well over 50 years. In the early days, after the moon landing, these teams had a 50% failure/success rate. The point is the information from both success and failure is data of value. The team did not have winners and losers they had valuable data that the 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. This is a practice of cooperation, NOT competion.
More thinking aloud:
- Profit, as a goal, is a system that is not aimed at the care of humanity. Capitalism does not meet the needs of the people as a whole. When progressive taxing system existed the possibility to care for humanity as a whole could have happened.
- The most important part of the USA constitution is the Bill of Rights, which says nothing about a profit driven economic system.
- I do not think a “losers and winners” economic practice will effectively care for the needs of all the People.
- A market driven economy will always work at the expense of people.
- People should come before profit, a progressive taxing system is a way to make this happen.
- A profit driven system means who has the money makes hires the lobbyist to make the rules.