Economic Growth And Its Implementation

Two of the world’s most popular and diverse economic systems are Communism and Capitalism. Capitalism, or a free enterprise economy, is an economic system constructed by the freedoms of the marketplace. The capitalist economy has several promising advantages. The capitalist government subtly changes and adjusts to the current conditions with ease. A communist system can be defined as an economic system where many, if not all, factors of production are controlled and owned by the government.

Nations have debated on which economic direction their country will direct its footsteps since the creation of societies. The United States, being one of the most stereotypical capitalistic nations, began as a Laissez-faire nation, but throughout the centuries America’s economic standpoint has shifted more into Socialism rather than Laissez-faire. The second largest economy in the world, China, is widely understood as being a socialist country, however, for the past years they have been inclined towards a more capitalist nation, but are still officially socialist. Socialism and Laissez-faire both have fatal flaws, but both concepts can be blended and pragmatic to the new millennium while having a positive future.

After World War II, society experienced many changes due to economic growth. The reason for the rise in the economy is "… the developments in technology, methods of production, communication, and transportation..." (Background; lines 1-2). These changes "… led to far more goods and services for many people..." (Background; Lines 10-11).

The commencements of the American Revolution and the Chinese Communist Revolution both had their beginnings in new Enlightenment thinking of the 1700s, often called, “The Age of Reason”. The Enlightenment promoted the thought, “that humanity could be improved through rational change.” In China, Karl Marx’s new Enlightenment ideas of social equality and no private property were the main inspirations of Mao Zedong’s political thinking. Introduced in his theory, Marx believed that capitalism, “an economic system in which investment in and ownership in the means of production, distribution, and exchange of wealth is maintained chiefly by private individuals”, was unstable and that in order to prevent a revolution, private property and social classes, maintained by private wealth through capitalism, needed to be eliminated.

     Throughout history, there have been many systems developed in order to have a better society. Two of the most analyzed, and debated systems that have tired to change an economy for the best are communism, and capitalism. Communism, and capitalism have been compared on many levels, such as why they will or will not work, and which one works better. Throughout this essay I will concentrate on the differences, and similarities of how each operates, along with the benefits, and problems that each of them produces.

Economics growth is, it the short run an increase in real GDP and in the long run an increase in the productive capacity of an economy (the maximum output that the economy can produce). GDP stands for Gross Domestic Product which is the country’s production of goods and services valued at market price in a given time period. Real GDP is when these figures are corrected for inflation using a base year (The UK uses 2003 as its base year). It can be measured in three different ways; the output measure is the value of the goods and services produced by all sectors of the economy; agriculture, manufacturing, energy, construction, the service sector and government. The

“The Party: The Secret World Of China’s Communist Rulers,” by Richard McGregor is a book which provides detailed insight into the Communist Party of China, revealing many of the secret underpinnings of how the party is run, and explores the question of how they have continued to stay in power for so long. While other strong socialist powers, such as the Soviet Union and Eastern Germany, fell at the end of the 20th century, the CPC was able to stay in control and ultimately come out of that period even stronger. In McGregor’s own words “the party picked itself up off the ground, reconstituted its armor and reinforced its flank. Somehow, it has outlasted, outsmarted, outperformed, or simply outlawed its critics, flummoxing the pundits who have predicted its demise at numerous junctures.” Instead of letting its own ideologies weaken its power, the CPC has continually adapted and transformed its policies and goals in order to maintain their stronghold over the nation. Through his impressive list of Chinese scholars and political contacts, McGregor is able to lay out the fundamental workings inside the Chinese government and the impressive actions they’ve taken to remain such a powerful organization.

China has been the biggest economic structure for quite along time, but there are horrible reasons for these, and these decisions are made by the people 's republic of china. The people 's republic is China 's government, and they make all the decisions.A dystopian society is an unbalance in a nation about the people and the government; such as china, the people 's republic of china, or their government, makes many decisions that have affected their country. The three points one can analyze through researching the topic of dystopian societies are the influence of the government, the impacts and change the people 's republic made on china, and the how literature can be used to educate people about the problems in a dystopian society and the progression toward inequality.

When it comes to a communist country following the capitalist standards, they have to take in to consideration the need for freedom and the chance of prosperity for the people. The dictators in China will not be successful in using a capitalist system if they deny Milton Freidman’s thesis that prosperity will create individual freedom and end dictatorship, because for a capitalist government to work they cannot be in a dictator ship because there is no freedom to the people and that limits their chance to prosperity.

Capitalism and Communism are on complete opposite ends of the political and economic spectrums. Complex historical foundations have left the footprint of this political “yin and yang” on virtually every nation across the globe. Countries, such as the United States of America, Canada, and Australia find economic and political roots in capitalism, where countries such as Russia, North Korea, and China maintain at least recognizable features of classic communism. Though both serve as delivery mechanisms for social, political, and economic norms and standards, the framework and philosophy through which each strives to meet this end could not be more different.

This article provides information about the communist state, it is obvious that these states are not democratic therefore the state define the social contract. However, evidence in this article suggest even country like China that will appease protestors; the state still determine the Social Contract.

“Capitalism is a social system based on the recognition of individual rights, including property rights, in which all property is privately owned” (Ayn Rand). The utilization of capitalism alongside of various other economic principles allows society as a whole to create prosperity. “Economically, when such freedom is applied to the sphere of production its result is the free-market” (Capitalism.org). It should make sense that societies who have capitalist values automatically experience the prosperity and freedom that Milton Friedman describes; however, this is not always the case. Oppressive governments while do hold capitalist systems limits the rights of their individuals. In eliminating specialization and comparative advantage governments are hurt. Hernando De Soto argues that there are multiple factors that contribute to wealth creation and McGregor exemplifies this point with descriptions of communist Chinese governments which show the aspects of their governments which are not capitalist.

Economic growth is a necessary but not sufficient condition of economic development. There is no single definition that encompasses all the aspects of economic development. The most comprehensive definition perhaps of economic development is the one given by Todaro: ‘Development is not purely an economic phenomenon but rather a multi – dimensional process involving reorganization and re orientation of the entire economic and social system. Development is a process of improving the quality of all human lives with three equally important aspects. These are: 1.

In this assignment, I will be discussing the questions and mention key factors from The Mystery of Capital by Hernando De Soto, and The Party: The Secret World of China’s Communist by Rachel McGregor. Economy is the study of social behavior as discussed in class, but with these two authors and books, they elucidate in a form that is highly intellectual. They both are unique in terms of discussing what is necessary to have a better system. Hernando De Soto’s book explains the events that created a better western economy, and in so doing, he argues how the east are not in a good system by providing examples through his own research. In the other hand, in Rachel McGregor’s book, she explains China’s system by providing examples of how the so-called party is treating its people.

Economic growth refers to the rate of increase in the total production of goods and services within an economy. Economic growth increases the productivity capacity of an economy, thereby allowing more wants to be satisfied. A growing economy increases employment opportunities, stimulates business enterprise and innovation. A sustained economic growth is fundamental to any nation wishing to raise its standard of living and provide a greater well being for all. Gross domestic product (GDP) is the monetary value of all final goods and services produced over a year. It is the total value of production within the economy. The total value of production is the total value of the final goods or services less the cost of