Download Tyler Frost diff Economies

ECONOMIC SYSTEMS
Tyler Frost 🌵
COMMAND
ECONOMY
A Command Economy is a centrally formed economy, in
which the government runs the economy.
The government decides what is on the market, who works
where, and how much of something is produced. The people
have no incentive since they are told what to create. All
benefits go to the people as a whole and not the individual
person.
Related to a Communistic or Authoritarian government.
ADVANTAGES 😀
Economy is moving quickly, for resources are
maximized
Necessities are achievable for everyone
Eliminates possibilities of market failure
No class system
Prevents unemployment
DISADVANTAGES 😩
Zero incentives, due to forced production leading to
zero innovations.
Self interest is eliminated, since consumers have no
say on what they can produce.
Government is in total control, limiting the
individual, making them the governments puppet.
Takes away liberties
COMPARISON TO EVENT
A tsunami occurs
http://www.youtube.com/watch?v=j0YOXVlPUu4
Command Economy- The government quickly accesses the
damage, makes factories produce what they see fit to help
speed up recovery. If anyone lost there job in the tsunami, they
would be given a new one in a factory aiding the recovery. The
government would control the recovery process and whats
done.
Free Market Economy- Businesses assess what is needed, and
possible produces these items for they know they will sell. The
ones who lost there jobs would be unemployed and off to find
another job. Factories/houses lost would be rebuilt if the
person/company had the money to do so.
Mixed Economy- Some people would get compensation for lost
jobs, and some people would find or be given new jobs. Some of
reconstruction would be paid for by the regular person and
some by the government.
http://hothardware.com/News/Foxconn-to-move-noniPhone-manufacturing-from-Shenzhen/
EXAMPLE
The biggest example of a Command Economy is
North Korea.
http://bcgavel.com/2013/04/08/opinion-does-america-have-the-moral-high-ground-with-north-korea/
http://www.bhmpics.com/view-north_korea_grunge_flag-1440x900.html
FREE MARKET ECONOMY
In a Free Market Economy the economy is run
by Laissez Faire. Business/firms and individuals
control what is produced by supply and demand.
The invisible hand regulates this.
ADVANTAGES 😎
Knows what people/consumers want
Enables self interests and innovations due to
competition
Government control is very limited
Allows individualism
Workers are working by choice
DISADVANTAGES 😥
The market and economy is uncertain
Laziness and unemployment could destroy the
economy since it is run by working and desiring
individuals
Rich stay rich and poor stay poor
Large unemployment
COMPARISON ON EVENT
War
Command Economy- Focus all factories on
creating artillery or things beneficial to the ones
fighting. They would lessen the "goods" in return,
but they would have a very strong military.
Free Market Economy - Businesses could turn
production on creating military items such as guns
to sell to the army if they choose. Business could
also choose to continue doing as there doing and
selling the same items they were previously
Mixed Economy- Some production would focused
on military aid and some would continue there
regular business. The government could give the
military money and certain business would be
allowed to aid production on military appliances.
http://news.discovery.com/earth/science-vs-fiction-world-war-z-130620.htm
EXAMPLE
http://www.illustratorsaustralia.com/portfolios/travis_storti
http://www.pageresource.com/wallpapers/21074/kangaroo-kangaroos-australia-hd-wallpaper.html
Australia has a
Free Market
Economy
MIXED ECONOMY
In a mixed economy, there are both
characteristics of a command economy and a free
market economy. Both private business and
government regulations are extended to a point.
It is capitalism vs Communism
ADVANTAGES 😋
Checks and balance to make sure the economy is in the
middle of the political spectrum.
Government could work with business to benefit
consumers.
Combined Command and Free Market Economy, helping
social welfare and competition
Consumers get a say along with government, room for
compromise
DISADVANTAGES 👿
Government and business could be working together
to benefit themselves
Some limits on individual rights, unemployment is
present, could be significant
High taxes
Disagreement between government and free buisness
could halt or slower economic growth.
COMPARISON
Workers speaking out wanting higher wages
Command Economy- Government would send these people to jail, for they would
feel it as trying to overthrow the government. The people would be immediately
shut down and silenced and the government would make them pay for it
Free Market Economy - The protest would be long lasting. The bosses would hear
there workers out discuss this situation. They could possibly get what they want,
and the government would let the businesses decide.
Mixed Economy- The government and business would collectively decide how
they were going to handle the situation. They would do most of the discussing,
leaving it out of the peoples hands for the most part. The possibility of higher
wages would be possible.
EXAMPLE
http://www.dotallyrad.com/2012/10/col-poops-on-tdm/merica-patriot-s-women-s-tank_design/
America is an Example a Mixed Economy .
http://storiesofusa.com/spanish-american-war/
My photo
SOURCES
"Mixed Economic System Definition | Investopedia." Investopedia.
Web. 30 Sept. 2014.
"Free Market." Princeton University. Web. 30 Sept. 2014.
"Britannica Mobile Edition." Britannica Mobile. Web. 30 Sept. 2014.
"Command Economy." What Is Command Economy? Definition
and Meaning. Web. 30 Sept. 2014.
"Federal Reserve Bank of San Francisco." Economic Research. Web.
1 Oct. 2014.