Types of Economic Systems

There are many different types of economic systems. The first one I will discuss is the Traditional Economic System. The people that live in this economic system continue to live in the traditional ways of their ancestors. They continue to harvest their own food, produce their own clothing and shelter. DIY! Traditon determines what they do for a living and how they live their life. Another economic system is Command Economic System. This economic system is completely controlled by the government. You are not allowed to open a small business or doing anything of your liking. The government controls what goods are needed to be made and how people's skills are used. Another completely opposite economic system is the Market Economic System. Economic decisions are based in the hands of the consumer. America has this economic system. We as Americans do not take control of this system by boycotting evil corporations such as Wal-Mart who destroy communities and have a disregard for the rights of their employees. We control this economic system through supply and demand. No country has any economic system fully 100%, most countries have a Mixed Economic System. This economic system has some government control and some free enterprises.

There is also differences in communism and socialism. In a communist economic system the government controls all means of production. They own and control production. In a socialist economic system, the people have a little more power. The government controls major industries such as power plants, railroads, banks, and airlines. Citizens are allowed to start business such as factories, stores or farms.