Paper Discusses The Various Types Of Economic Systems (Essay Sample)

Types of economic systems
Name
Institution
Types of economic systems
An economic system is a way in which the resources of a nation ate used in the production of serviced and goods, and the way in which the distribution of these services and products to the final consumers. It must be clear on what to produce, for whom to produce and how to produce products. There are four main PAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXPAGEXXXtypes of economic systems in the globe: market, command, mixed and traditional systems. Each of the four systems has its weaknesses and strengths, tendencies and sub-economies and a troubled history. Depending on the environment and commodities produced, some economic strategies and policies are more successful than others. Below, we compare these systems, analyzing their advantages and disadvantages.
The traditional economic system is quite literally the most ancient and traditional type of economy worldwide. It is cherished because it still produces products which are a direct result of religions, customs, beliefs, and traditions. Huge portions of the world still operate under this system and these areas tend to be second or third-world, rural and closely tied to the land through farming. However, the population of nomadic people is becoming smaller, and whereas their economies are still traditional, they interact with other markets in trade, selling, and barter. One of the advantages of this system is that it enables the preservation of customs and traditions while it is non-existent in mixed or market economies (Pejovich, 2012). Moreover, there is also the fact that each member of the traditional economy has a more notable and distinct role, and these societies are frequently socially satisfied and tightly knit. Its main disadvantage, on the other hand, is that it does not enjoy the things which other economies take for granted, for example, centralized utilities, western medicine, and technology.
The command economic system is a step up from traditional economy regarding economic advancement. One of the most notable features of the system is that a large part of it is controlled and regulated by a centralized power, mostly a federal government. It tends to develop when a nation possesses a tremendous amount of valuable resources. The government steps in by regulating the resources. In most cases, the states own all tools involved in the industrial process from the facilities to the equipment. It has several potential benefits if the government uses reasonable and well-calculated regulations (Gregory & Stuart, 2011). First and foremost, it can to create a healthy supply of its resources and rewards it citizens with affordable prices. Unemployment is not common since the government works similarly to a market economy in growing upon its populace.
The third system is known as the market economic system, which is quite similar to a free market. The government has no control over valuable goods, vital resources or any essential part of the economy. In this way, firms run by the citizens determine the running of the economy, what demands are necessary and how to generate supply is. It's most notable advantage is the separation of the government and the market, which prevents states from being too powerful, too similar and too controlling, meaning that they cannot oppress their population while living luxuriously on controlled resources. The separation of the state and the church has been vital to the social success in the US. In the same way, the separation of the state and the market has been crucial to our economic success (Gregory & Stuart, 2011). Of course, there is something wary about a system that must foster constant growth to be successful, but as a result innovation and progress have o...