Economic Systems

Kibbutz

• http://wejew.com/media/8064/The_Kibbutz_in_Israel:_Evolution_of_the_Revolution/

• http://www.youtube.com/watch?v=8GQ_bYu-cgM

Basic Economic Questions

• What, How, For Whom?• Based on how you answer these

questions, changes the economic system you are a part of.

Range of Economic Systems

Command/ Socialism Welfare Industrial Market

Communism Capitalism Capitalism Capitalism

North Korea Cuba Sweden Germany Singapore

China UK Japan US

Kibbutz

Analyzing the Range

• No Country fits perfectly into the range b/c all countries have a mixed economy

Analyzing the Range

• No Country fits perfectly into the range b/c all countries have a mixed economy

• In order to place a country on the range, find what share of total spending is carried out by the nation’s government

Analyzing the Range

• No Country fits perfectly into the range b/c all countries have a mixed economy

• In order to place a country on the range, find what share of total spending is carried out by the nation’s government

• The larger the government’s share, the farther to the left the country is located

Analyzing the Range

• No Country fits perfectly into the range b/c all countries have a mixed economy

• In order to place a country on the range, find what share of total spending is carried out by the nation’s government

• The larger the government’s share, the farther to the left the country is located

• Basically, the more involved the gov’t, the further to the left the economy shifts

Command/Communism

• An economy that is planned and controlled by a central administration

• China

Socialism

• Economic system in which the means of production are publicly owned or commonly owned and controlled cooperatively.

• Cuba

Welfare Capitalism

• Refers either to the combination of a capitalist economic system with a welfare state or, to the practice of businesses providing welfare-like services to employees.

• United Kingdom

Welfare Capitalism

• Refers either to the combination of a capitalist economic system with a welfare state or, to the practice of businesses providing welfare-like services to employees.

• Welfare capitalism in this second sense, or industrial paternalism, was centered in industries that employed skilled labor and peaked in the late 19th and early 20th centuries.

Industrial Capitalism

• Characterized by the increasing use of machinery to maintain an economic balance through its production processes.

• Germany, Japan

Market Capitalism

• A social and economic system in which prices are fixed by the law of supply and demand rather than by a government or other body.

• United States