Economic Systems: Capitalism, Communism and Socialism

Decent Essays

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 of production, land, labor and capital, are owned by the people but private property doesn’t exist. Also, in communism, all the lands are shared equally among everyone. Lastly, socialism is the system which is operated by the people who own the factors of production and act for the welfare of all. Thus, there are different types of economic systems because different systems are favorable in diverse countries depending on the influence it has had from other nations.
Capitalism emerged in Europe after the downfall of feudalism. Capitalism was solely based on trade and capital, the traders profited more as the demand of goods increased. But, when the demand decreased, the traders lost almost everything. Early capitalists came up with new plans and new business methods to create wealth and this was called the

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