Economic Systems

mind map of economic system

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Economic Systems by Mind Map: Economic Systems

1. Communism

1.1. Government owns businesses

1.2. Government determines prices

1.2.1. Capitalism has less oversight than Communism

1.3. Government determines products and amounts to produce

1.4. Innovation not rewarded

1.5. China is an example of communism

2. Socialism

2.1. Government ovesight

2.1.1. Businesses can be privately owned with government approval

2.2. publicly owed business

2.3. Workers own products made

2.4. Innovation with government approval

2.5. Canada is an example of socialism

3. Capitalism

3.1. Free Market

3.2. Little government oversight

3.2.1. Communism the government manages the liabilities of the business

3.3. Market determines pricing

3.4. Innovation is rewarded

3.5. The United States is an example of Capitalism

4. It is important to have an economic system to keep a country or micro economy in balance. With an economic system the value of goods and services would hard to determine and there would be a abundance of corruption and worker abuses,

4.1. Communism the government tells you where you can work and live,

4.2. With Socialism you have some freedom as to where to work

4.3. Capitalism you can work where you want and earn a fair wage

5. The United States Has a Mixed Economic System

5.1. While the U.S. is primarily operating within a capitalistic economy there are social programs like Social Security, Supplemental Nutritional Assistance Program and Medicare

6. Comparing Systems

6.1. Communism does not allow for free market

6.1.1. Without free market there may be shortages of goods and services

6.1.2. Shortages can cause big prices increases

6.1.3. Workers struggle to accumulate wealth

6.2. Capitalism has a free market

6.2.1. the market determines prices and amount of productivity

6.2.2. Businesses can fail and people can lose wealth

6.2.3. worker can advance and can accumulate wealth

6.3. Socialism vs Capitalism

6.3.1. Private business ownership with government approval

6.3.2. Free healthcare, education and other social benefits

6.3.3. Much higher income tax rates

6.4. Socialism vs Communism

6.4.1. very similar systems

6.4.2. socialism has less government oversight

6.4.3. Products and services are produced to meet consumer needs where with communism the market needs are not a consideration of production

6.4.4. Many communist and capitalist economies tend to lean towards socialism