Market Based Economy Market Based Economy

Vs. Vs. Planned EconomyPlanned Economy

Market Based economyMarket Based economy Individual freedom – those who have private property,good.resources, etc. Individual freedom – those who have private property,good.resources, etc.

have the freedom to use property as they see fit. have the freedom to use property as they see fit. Priate Property – Individuals, rather then government, are the owners of Priate Property – Individuals, rather then government, are the owners of

recourses, goods, etcrecourses, goods, etc An economy that operates by voluntary exchange(act of buyers and sellers An economy that operates by voluntary exchange(act of buyers and sellers

freely and willingly engaging in market transactions ) in a free market freely and willingly engaging in market transactions ) in a free market is not planned or controlled by a central authorityis not planned or controlled by a central authority An economy in which decisions regarding investment, production and An economy in which decisions regarding investment, production and

distribution are based on supply and demand, distribution are based on supply and demand, prices of goods and services are determined in a free price system. prices of goods and services are determined in a free price system.

(mechanism through which all parts of the market communicate without coming in direct (mechanism through which all parts of the market communicate without coming in direct contact with one another)contact with one another)

http://financial-dictionary.thefreedictionary.com/Market-based+economy

History examplesHistory examplesThe fact is that no One nation is just one type of economy. Sooner or later they

change sides. The reason the U.S. isn't just considered a market based economy would have to be because the government still controls certain things. One great example of a market based economy would have to be the stock market crash, also known as the great depression.

What the great depression did/proved

With the stock market crash and the fears of further economic woes, individuals from all classes stopped purchasing items - which meant that production for products had to be reduced.

The government had to step in and make the new DEAL (president Roosevelt)

Some examples of the New Deal - re-establishing trust in the currency - putting people back to work

For the first time that Americans thought of their government as a solution to the problems that individuals and society at large were experiencing

http://www.usnews.com/news/articles/2008/01/17/the-new-deal-sealed-the-deal

Examples of how this effects the

citizens of the US.

• Not planned or controlled by a central authority (designated authority within the sending country that administrates and oversees the adoption process ) )

Income/salaryIncome/salary

Wealthy Wealthy

-There are people that are financially stable-There are people that are financially stable-Better benefit the country-Better benefit the country

PovertyPoverty

-Free market, more space for bad decisions-Free market, more space for bad decisions-not everyone has guaranteed success-not everyone has guaranteed success

If Economy goes down, the people go down with it, but government still offers help. If Economy goes down, the people go down with it, but government still offers help. (Medicare, social security, etc.) (Medicare, social security, etc.)

http://www.heritage.org/index/country/unitedstates

To what degree is this evident in

the US economy?

Different perspectives exist as to how strong a role the government should have in Different perspectives exist as to how strong a role the government should have in both guiding the market economy and addressing the inequalities (Difference in size, both guiding the market economy and addressing the inequalities (Difference in size, degree, circumstances, etc.; lack of equality) the market produces.degree, circumstances, etc.; lack of equality) the market produces.

In a carefully planned Command Economic system, both surplus (amount of In a carefully planned Command Economic system, both surplus (amount of something left over when requirements have been met) production and something left over when requirements have been met) production and

unemployment rates remain at a reasonable levelunemployment rates remain at a reasonable level

http://en.wikipedia.org/wiki/Market_economy

Planned Economy

Type of economy that gives the government total control over the Type of economy that gives the government total control over the allocation of resources. allocation of resources.

allows the government to determine everything from distribution to allows the government to determine everything from distribution to pricing.pricing.

Planned economies basically give the government dictatorship type Planned economies basically give the government dictatorship type control over the resources of the country. control over the resources of the country.

Planned economies can provide stability, but also can limit the Planned economies can provide stability, but also can limit the growth and advancement of the countrygrowth and advancement of the country

http://www.investorwords.com/8175/planned_economy.html

History examplesHistory examplesChina has been changing from a planned economy to a market based economy. The China has been changing from a planned economy to a market based economy. The

People's Republic of China, which had a planned economy until the late 1970s, when People's Republic of China, which had a planned economy until the late 1970s, when Mao Zedong (Chinese communist revolutionary, and political theorist ) died. Since giving Mao Zedong (Chinese communist revolutionary, and political theorist ) died. Since giving up its planned economy, it has coming close to double-digit economic growth rates. up its planned economy, it has coming close to double-digit economic growth rates.

Parts where Chinas government is involved in the economyParts where Chinas government is involved in the economy

stabilize tax collection stabilize tax collection sponsor the construction of infrastructure such as communications and railroads sponsor the construction of infrastructure such as communications and railroads draw up ambitious national plans, some of which were implemented after 1949 draw up ambitious national plans, some of which were implemented after 1949

China had a market economy which was "performing well," which explains why China China had a market economy which was "performing well," which explains why China

was capable of returning to a market economy after economic reform started in 1978was capable of returning to a market economy after economic reform started in 1978

http://en.wikipedia.org/wiki/Economic_history_of_modern_China

How this effects the citizensHow this effects the citizens

InequalityInequality

Urban vs. RuralUrban vs. RuralThe owners always make the money, so far the Urban The owners always make the money, so far the Urban

Chinese seem to get that side of things.Chinese seem to get that side of things.Workers aren't paid very much do to the fact that they just Workers aren't paid very much do to the fact that they just

work in farms, factories, etc. The rural Chinese get that side of work in farms, factories, etc. The rural Chinese get that side of things. things.

Chinese going Global Policy – its where Chinese companies are Chinese going Global Policy – its where Chinese companies are looking to increase their international presence by investing abroad. looking to increase their international presence by investing abroad.

China’s economy remains “mostly un-freeChina’s economy remains “mostly un-free Government determines everything from distribution to pricingGovernment determines everything from distribution to pricing Limit the growth and advancement of the countryLimit the growth and advancement of the country The people don’t get to make many decisions.The people don’t get to make many decisions. http://www.heritage.org/index/country/china

To what degree is this evident in the China’s economy?

China’s economy remains “mostly China’s economy remains “mostly Un-free.” Un-free.”

The Chinese government controls 150,000 enterprises, employing millions of people.The Chinese government controls 150,000 enterprises, employing millions of people.

Features of socialist system continue in china, for example most city workers obtain Features of socialist system continue in china, for example most city workers obtain housing and low rent payments.housing and low rent payments.

Provides free health care in most casesProvides free health care in most cases

Steps In to prevent sharp increases in food pricesSteps In to prevent sharp increases in food prices

They were poor, but they were guaranteed the benefits of what was known as the They were poor, but they were guaranteed the benefits of what was known as the “Iron Rice Bowl”“Iron Rice Bowl”

- A secure jobA secure job- Free housingFree housing- Health care Health care

http://www.heritage.org/index/country/china

Brief Evaluation of Market vs.

Planned Economies

I would have to say that the market based economy would I would have to say that the market based economy would work better then a planned economy. There are several reasons i work better then a planned economy. There are several reasons i think that, but the main reasons would have to be the freedom and think that, but the main reasons would have to be the freedom and also the stress reflected on the citizens from a planned economy.also the stress reflected on the citizens from a planned economy.

In a planned economy the government has control over In a planned economy the government has control over everything , for example they can raise taxes, which doest really everything , for example they can raise taxes, which doest really give you much of free will and stresses you down, unlike in a market give you much of free will and stresses you down, unlike in a market based economy it all depends on demand. based economy it all depends on demand.

http://www.heritage.org/index/visualize?countries=china|unitedstates&src=ranking

4 3 2 1Market Based Economy Includes a full description of a

Market based economy including historical examples, and specific examples of how production, distribution and consumption of goods, services and resources are allocated.

Includes a partial description of a Market based economy including historical examples, and specific examples of how production, distribution and consumption of goods, services and resources are allocated.

Includes an incomplete description of a Market based economy. It is missing historical examples, and or specific examples of how production, distribution and consumption of goods, services and resources are allocated.

Includes a poor or incorrect description of a Market based economy examples are completely missing.

Examples and evaluation of the US economy

Includes a full examination of the US economy and to what degree it demonstrates a fully Market based economy. There are multiply examples discussed and analyzed in detail. Detailed examples of the effects on everyday citizens are given.

Includes a partial examination of the US economy and to what degree it demonstrates a fully Market based economy. There are multiply examples but not all are discussed with enough detail. Brief examples of the effects on everyday citizens are given.

Includes an incomplete examination of the US economy and to what degree it demonstrates a fully Market based economy. There are few or no examples with little to no detail. Examples of effects on everyday citizens are confusing, or contain incorrect information.

Includes a poor examination of the US economy and to what degree it demonstrates a fully Market based economy. There are no examples given. No examples of the effects on everyday citizens are given.

Planned Economy Includes a full description of a Planned economy including historical examples, and specific examples of how production, distribution and consumption of goods, services and resources are allocated.

Includes a partial description of a Planned economy including historical examples, and specific examples of how production, distribution and consumption of goods, services and resources are allocated.

Includes an incomplete description of a Planned economy. It is missing historical examples, and or specific examples of how production, distribution and consumption of goods, services and resources are allocated.

Includes a poor or incorrect description of a Market based economy examples are completely missing.

Examples and evaluation of the Chinese economy

Includes a full examination of the Chinese economy and to what degree it demonstrates a fully Planned economy. There are multiply examples discussed and analyzed in detail. Detailed examples of the effects on everyday citizens are given.

Includes a partial examination of the Chinese economy and to what degree it demonstrates a fully Planned economy. There are multiply examples but not all are discussed with enough detail. Brief examples of the effects on everyday citizens are given.

Includes an incomplete examination of the Chinese economy and to what degree it demonstrates a fully Planned economy. There are few or no examples with little to no detail. Examples of effects on everyday citizens are confusing, or contain incorrect information.

Includes a poor examination of the Chinese economy and to what degree it demonstrates a fully Planned economy. There are no examples given. No examples of the effects on everyday citizens are given.

Market vs. Planned economy position.

A clear and definite position is taken in defense of either economic system. Specific examples are revisited to reinforce position taken.

Position taken is not 100% clear. Position may not appear definitive, and examples partially undermine position.

Position contradicts examples and student does not appear committed to their chosen position. Examples are vague.

No position is taken and not examples are provided to reinforce position.

Visual Aid Visual aid is polished and cohesive. It is easy to read, has a nice mix of text and visual.

Visual aid is heavy on either text or visuals; it has a few mistakes that distract from the presentation.

Visual aid is almost solely text or visuals; there are several mistakes that make the presentation difficult to follow.

Visual aid detracts from the presentation, there are many mistakes, factual errors, and it has no balance between text and visual.

Sources See sources rubric Included in the essay section.

Presentation Student is prepared and well rehearsed; time is filled completely with relevant information. Student can elaborate on visual aid, and answer questions

Student seems prepared but needs more practice for a polished presentation. Student can elaborate on visual aid.

The student is somewhat prepared but it is clear that rehearsal is lacking. Student is not able to elaborate on visual aid and simply reads slides.

Student does not seem at all prepared to present. Student fumbles over word choice and pronunciation and does not elaborate upon visual aid.

Visual Aid Visual aid is polished and cohesive. It is easy to read, has a nice mix of text and visual.

Visual aid is heavy on either text or visuals; it has a few mistakes that distract from the presentation.

Visual aid is almost solely text or visuals; there are several mistakes that make the presentation difficult to follow.

Visual aid detracts from the presentation, there are many mistakes, factual errors, and it has no balance between text and visual.

Teacher Comments:This student had passing content in their presentation, but did not pass because it was clear that they really didn’t understand the content. When doing a presentation you should have a bullet point with one line of text, followed by two additional lines that are not on the PowerPoint. This elaboration is key in being able to determine if you actually understand the content. Without elaboration, it makes this very difficult. It then appears that you are simply reading whatever you copied down and not that you actually understand it. There are also several errors in the presentation.