Economic Systems

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Economic Systems by Mind Map: Economic Systems

1. Socialism

1.1. A system in which the community advocates for trade, production and distribution within an economy.

1.1.1. Workers vote to make business decisions.

1.1.2. A bakery (or any business) pays all workers equally depending on how profitable the company is. The employees vote on business decisions.

1.1.3. Pros: People are paid according to their contribution to the company.

1.1.3.1. Cons: Ignores individuals who are competitive.

1.1.3.2. Eliminates poverty.

2. Capitalism

2.1. An economic and political system where a countries trade and industry are controlled by private owners rather than the state.

2.1.1. The economic system within the United States.

2.1.2. The government does not play a role in private businesses and the decision making within them.

2.1.3. Pros: Results in the best products at the best price.

2.1.3.1. Cons: Does not promote equality in opportunity growth.

3. Communism

3.1. An advocate for "classes" where people are paid according to their skills and abilities.

3.2. There are only five countries who practice this type of economic system: China, Vietnam, North Korea, Laos, and Cuba.

3.2.1. In Cuba, medical professionals, hospitals, and any medical needs is monitored and controlled under the Cuban government.

3.2.2. Food distribution and farmers are under the reigns of the government in North Korea.

3.2.3. China controls their manufacturing companies which produce electronics, toys and consumer goods.

3.3. Pros: Creates industrial power and executes large projects.

3.3.1. Cons: Eliminates a free market.

4. An economic system plays an important role in keeping services, capital, labor investments, etc organized. It sets processes in place and gives countries a system to follow in order to be successful for the people living within it.