Government Economies

Types of Economies


Socialism- is an economic system where the government basically controls everything. Socialism has three main goals: 1) distribution of wealth and economic opportunity equally amongst all people, 2) control society’s decisions about all production, 3) and public ownership of all land, factories, and other means of production. Socialism started out as an idea for a mutually beneficial form of government to help low-paid workers in Europe. The idea of distributed wealth among the workers was meant to help the community, however this takes the incentive to work and can create more problems than intended. Many countries throughout Europe and Asia have attempted this form of government including: Tanzania, Denmark, Norway, and Sweden.

“Economic Theories.” The Foundations of American Government. Web. 12 January 2016.


Capitalism- Private citizens own/use the means of production in order to make a profit. Who makes the economic decisions private citizens--> owners and consumers. Competition encourages a variety of products and innovation


Communism- A political theory derived from Karl Marx, advocating class war and leading to a society in which all property is publicly owned and each person works and is paid according to their abilities and needs. also known as a command system, is an economic system where the government owns most of the factors of production and decides the allocation of resources and what products and services will be provided. Current Communist Countries: China, Cuba, Laos, North Korea, and Vietnam. The end goal of communism was to eliminate class distinctions among people, where everyone shared equally in the proceeds of society, when government would no longer be needed. There was a class struggle between the masses, which Marx referred to as the proletariat, who could only offer their labor, and the owners of the means of production, which included land, raw materials, tools and machines, and especially money. Karl Marx called these members of the ruling class the bourgeoisie. He believed that a political revolution was essential because the state was a central instrument of capitalist society, and since the bourgeoisie had a stranglehold on the government, it would, in many cases, be necessary to use force and violence to overthrow the capitalists.

"Economic Systems: Capitalism, Communism, and Socialism." Economic Systems: Capitalism, Communism, and Socialism. N.p., n.d. Web. 14 Jan. 2016.