ECONOMIC SYSTEMS

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ECONOMIC SYSTEMS by Mind Map: ECONOMIC SYSTEMS

1. SOCIALISM

1.1. THE GOVERNMENT OWNS BIG BUSINESS. CITIZENS OWN SMALL

1.1.1. CUBA IS A SOCIALISTIC ECONOMY, STATE RUN WITH NO STOCK EXCHANGE.

1.2. PROS: INCOME AND CLASS EQUALITY, THE CITIZENS HAVE A VOICE, AND LESS THREAT OF RECESSION OR DEPRESSION.

1.2.1. CONS:MORE GOVERNMENT CONTROL, LIMITS ON UNIONS AND OTHER CIVILIAN INSTITUTIONS, AND REDUCES INITIATIVE FOR INNOVATION AND CREATIVITY.

2. COMMUNISM

2.1. THE GOVERNMENT MAKES MOST DECISIONS AND REGULATES ALL AREAS OF LIFE AND BUSINESS

2.1.1. NORTH KOREA STRICTLY ADHERES TO A COMMUNISTIC ECONOMIC SOCIETY, DICTATED BY A RULER WHO GOVERNS MOST ASPECTS OF THE CITIZENS LIVES.

2.2. PROS: NO SOCIAL CLASS, DECREASES IN UNEMPLOYMENT, WEALTH EQUALITY, AND ALL BASIC NEEDS ARE PROVIDED FOR CITIZENS.

2.2.1. CONS:FUELS POVERTY THROUGH LACK OF GROWTH AND OPPORTUNITY, PEOPLE HAVE NO VOICE OR FREEDOM TO LIVE, LACK OF AMBITION DUE TO GOVERNMENT ENFORCED EQUALITY.

3. MIXED

3.1. COMBINES THE THREE OTHER ECONOMIC SYSTEMS IN A BLEND OF COMMAND, MARKET, AND TRADITIONAL CHARACTERISTICS.

3.1.1. THE ORIGINAL CONSTITUTION OF THE UNITED STATES LAID THE BASIC PLANS FOR A MIXED ECONOMY.

3.2. PROS: EQUAL DISTRIBUTION, INCREASED PROFIT FOR INCREASED PRODUCTIVITY AND SUCCESS, ENCOURAGES INNOVATION AND CREATIVITY TO MEET NEEDS, AND GOVERNMENT ROLE HELPS WITH TECH, AERO, DEFENSE, AND AREAS LIKE HEALTHCARE AND ECONOMIC FUNDING.

3.2.1. CONS: INCREASED FREEDOM CAUSING DECREASED SUPPORT, RISK OF GOVERNMENT MONOPOLY WHICH CAN LEAD TO SLOWED GROWTH OR RECESSION, AND GOVERNMENT HAND IN AIDING BUSINESSES MEANS THAT LARGE COMPANIES CAN USE TAX MONEY TO BAIL OUT.

4. CAPITALISM

4.1. A FREE MARKET WITH LITTLE GOVERNMENT CONTROL

4.1.1. FRANCE AS WELL AS THE US ARE BOTH SLIGHTLY CAPITALISTIC. HOWEVER IT IS HARD TO SUSTAIN CAPITALISM WITHOUT GIVING WAY TO A MIXED ECONOMY.

4.2. PROS: ECONOMIC AND POLITICAL FREEDOM, EFFICIENT MARKET SYSTEMS, INCENTIVE FOR WEALTH STIMULATES INNOVATION, INCREASED WEALTH BENEFITING ALL THROUGH TRICKLE DOWN

4.2.1. CONS: INCREASED MONOPOLY AND CORPORATE POWER, UNDER PROVISION OF GOODS IGNORING SOCIAL BENEFITS, AND WEALTH INEQUALITY AND INHERITED WEALTH CREATING CLASSISM AND SOCIAL DIVISION.