Economic Systems

Get Started. It's Free
or sign up with your email address
Rocket clouds
Economic Systems by Mind Map: Economic Systems

1. Capitalism

1.1. Description

1.1.1. Privately owned and operated

1.1.2. Owned by individuals, not government officials.

1.1.3. Operated for profit

1.1.4. Owners decide how much to produce, charge, and pay workers.

1.2. PROS

1.2.1. Allows competition among companies.

1.2.2. Right to buy, sell, and rent property.

1.2.3. Freedom of choice (career, living, etc)

1.3. CONS

1.3.1. Wealth is distributed among a few people.

1.3.2. Existence of inequality.

2. Socialism

2.1. Description

2.1.1. Based on the idea that most, if not all, basic businesses should be owned by the government.

2.1.2. Believe on the equal redistribution of wealth among the people.

2.2. PROS

2.2.1. Social equality.

2.2.2. Creation of social programs (housing, health, and education)

2.2.3. Workers have better benefits (sick leave, holidays, vacations, etc)

2.3. CONS

2.3.1. Very high taxation.

2.3.2. Brain drain.

3. Communism

3.1. Description

3.1.1. Economic and political system.

3.1.2. Government makes all economical decisions.

3.1.3. Government owns all major factors of productions.

3.2. PROS

3.3. CONS

3.3.1. Intrudes into people's lives.

3.3.2. No freedom of choice ( career, living, etc)

3.3.3. No way to predict supply and demand.

3.3.4. Severe economic depression.

3.3.5. Government guesses what people need.

4. Mixed Economies

4.1. Description

4.1.1. Economic system adopted by the USA

4.1.2. Resources allocations made by both market and government.

4.2. PROS

4.2.1. Government rules and regulations ( unemployment, environment acts, etc)

4.3. CONS

5. Importance of having an economic system

5.1. Freedom of choice

5.2. Distributes wealth

5.3. Dictates taxation

5.4. Right of property

5.5. Creation of jobs