Ecconomics
1)
The differences between a tradition-based, a command-based, and a free market economy serve to uphold the unique values, of the society they represent. A tradition-based economy would be found in a society with a fixed hierarchy. One carries on the family trade, so there are few variables in a tradition-based economy. Leaving the society to remain quite fixed. The government controls a command-based economy. The needs of the society are determined and work is rationed out in equal shares. This kind of economy would be most likely implemented by a communist government. The free market economy is what The United
States of America was built on. Individuals decide for themselves what to buy, sell, and make. As a result individuals profits rise and fall as a direct result of their own economic decisions.
2)
The free market system, otherwise referred to, as capitalism has been closely examined by many economists over the years. Perhaps three of the most famous are Adam Smith, Karl Marx, and John Keynes. Smith was famous for his idea that the “invisible hand” controlled the system and would keep everything in balance. The basic principle of this theory is that the sales that meet the greater needs of the economy will survive and any business that is not marketable will go under. Thus as a whole the economy will thrive. Karl Marx had a much more cynical view on the capitalist economy. He thought that the only way profit was to be made in this system was to exploit workers. He said that eventually it would be just a few capitalist workers at the top and
everyone else would become the underclass workers, “surfs” if you will. Marx thought that the only outcome would be a communist economy. John Keynes took a different view on the free market system then Smith or Marx. Keynes thought that the government had to intervene periodically to keep capitalism running. He said that the government should spend money, when the privet sector
The differences between a tradition-based, a command-based, and a free market economy serve to uphold the unique values, of the society they represent. A tradition-based economy would be found in a society with a fixed hierarchy. One carries on the family trade, so there are few variables in a tradition-based economy. Leaving the society to remain quite fixed. The government controls a command-based economy. The needs of the society are determined and work is rationed out in equal shares. This kind of economy would be most likely implemented by a communist government. The free market economy is what The United
States of America was built on. Individuals decide for themselves what to buy, sell, and make. As a result individuals profits rise and fall as a direct result of their own economic decisions.
2)
The free market system, otherwise referred to, as capitalism has been closely examined by many economists over the years. Perhaps three of the most famous are Adam Smith, Karl Marx, and John Keynes. Smith was famous for his idea that the “invisible hand” controlled the system and would keep everything in balance. The basic principle of this theory is that the sales that meet the greater needs of the economy will survive and any business that is not marketable will go under. Thus as a whole the economy will thrive. Karl Marx had a much more cynical view on the capitalist economy. He thought that the only way profit was to be made in this system was to exploit workers. He said that eventually it would be just a few capitalist workers at the top and
everyone else would become the underclass workers, “surfs” if you will. Marx thought that the only outcome would be a communist economy. John Keynes took a different view on the free market system then Smith or Marx. Keynes thought that the government had to intervene periodically to keep capitalism running. He said that the government should spend money, when the privet sector