Three Economic Systems of the World
A Presentation by Dylan Bethany
The traditional economic system is based on custom and social beliefs.
Probably the most important advantage of a traditional economy is the fact the goods & services produced are based solely on what the people need at a certain time.
A traditional economy's inability to change or take on newer ideas and low standards of wealth/living are a major disadvantage to the people.
- Australian Aborigines
- Inuit tribes
If I were living in this economy, I'd be working a job that was decided based on my gender and would probably be married to some woman I didn't even know. I would be living a life void of personal choice.
Advantages of command economies include equal employment opportunities and access to basic necessities for all of society.
The biggest disadvantage of a command economy is that the government often miscalculates the amount of goods needed by the people, so there is an excess of goods that don't get used or aren't needed. Since the government has total control, individual choice as a consumer is nonexistent.
- North Korea
If I were living in this economy, I would probably be working in a factory and only surviving on goods the government says I need.
There are many advantages of the market economic system.
- Free enterprise.
- Citizens of a market economy can own private property and sell goods at will.
- Competition between businesses drives up production and lowers prices.
- Government has very limited involvement.
A major disadvantage is the overall instability of the economy, which can lead to unemployment, inflation, and growth. The gargantuan gap between the rich and the poor is also a prominent issue.
- United Kingdom
In this economy, I'm free to buy or sell whatever I want, within reason. I could even start up my own business if I wanted to, but only with permission with the government.