The economic environment in which businesses operate is obviously very important. So, it’s no surprise that throughout history, philosophers and economists have proposed different ways to structure an economy. One way to think about these different systems it to imagine a spectrum between pure capitalism and free markets on one end and communism or so-called command economies on the other end. So, here are some questions for you to ponder this week (and again, these are merely suggestions; I’m sure you can come up with your own topics, which I would prefer):
- What role should the government play in an economy?
- Are economic measures the only benchmark we should use to evaluate progress?
- What are some of the key advantages and problems of different economic systems?
- What are some basic principles that YOU would use to design an economy?
Please write about 150-200 words.
And please also make a reply to a person’s post.
I believe that the way an economy is structured within a population relies heavily on the way its political system is established for that population. A communist economy would be very difficult to go hand in hand with a democratically political society because that strips away the very basic idea of individual freedom and authority. As a result, I think the government has a very important role in determining the organization and influences of an economy. The advantages of capitalism and a free market economy is the production of higher quality products from efficient use of resources due to competition resulting in more economic progress than an economy that is defined by a single factor and restricts any kind of growth. This is where I believe communism fails to pass the economic measure that evaluates progress: efficiency. The ability to develop and create products with the least amount of resources and provides better goods and services is a way to measure business’ progress and thus the economy’s. Nonetheless, government regulation in an economy is a very important and necessary action that just needs to be kept in moderation in order to ensure the most successful possibility of an economic system.
-around 100 words.