Types of Economy

Mackenzie, Adri, Jordan, Ashley, Sean, Justice, Jake

Capitalism

In a Capitalist economy, the people run the economy. The government has little to no involvement in business or the economy. There is a lot of competition for profit it a capitalist economy. Since the government has no say in what people do to make money, the people can compete and work hard to make more money for themselves. Some countries that have a capitalist economy are Germany, the United States, and Japan.
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Communism

The government owns of the factors of production and decides the allocation resources and what products and services will be provided. The centrally planned economy (command economy) was made to make economic decisions. The employees operated under party-aupoited economic planners, who set output targets in prices and frequently interfered with the operations to satisfy personal or party desires. Communist economies are not efficient and because of the Communist Party's desire to retain power. Most economic resources were devoted to industrialization and to military, depriving consumers of food and other necessities. Many people had to wait in long lines for common consumer goods. The profit motive is between farmers and small businesses.
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Socialism

Socialism is a form of government originally theorized by Karl Marx which was originally supposed to be the end result of Communism. In Socialism the government controls all means of production instead of individuals or companies. In Marxist-Leninist Socialism there's usually a authoritarian type government. Socialism has limited competition but there is small businesses. Current Socialist governments are in place in China, Denmark and Finland.

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