In this short essay I will describe what I thought of an ideal economic system, in few words, which should bring an end to the current problems displayed in both capitalist and socialist economic systems. The Capitalist Economic System (as described by Wikipedia): Capitalism is an economic system in which wealth, and the means of producing wealth, are privately owned and controlled rather than state owned and controlled. Through capitalism, the land, labor, and capital are owned, operated, and traded by private individuals either singly or jointly, and investments, distribution, income, production, pricing and supply of goods, commodities and services are determined by voluntary private decision in a market economy. A distinguishing feature of capitalism is that each person owns his or her own labor and therefore is allowed to sell the use of it to employers. Summary:
* Wealth and production are privately owned.
* Each person owns his/her labor and can sell the use of it to employers. * Each person’s wealth depends on the price set by his/her employer, or his/her own price. The Socialist Economic System (as described by wikipedia):
Economically, socialism denotes an economic system of state ownership and/or worker ownership of the means of production and distribution. In the economy of the Soviet Union, state ownership of the means of production was combined with central planning, in relation to which goods and services to make and provide, how they were to be produced, the quantities, and the sale prices. Soviet economic planning was an alternative to allowing the market (supply and demand) to determine prices and production. During the Great Depression, many socialists considered Soviet-style planned economies the remedy to capitalism’s inherent flaws – monopoly, business cycles, unemployment, unequally distributed wealth, and the economic exploitation of workers. Summary:
* Wealth, production and distribution are owned by the state. * All...
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