Economic Systems

Economic systems determine what to produce, how to produce and who will receive production. They must also adapt to changing
economic environments. How will America's economic system adapt to changes caused by September 11 is an example.
Adam Smith described early market based Capitalism in his 1776 book The Wealth of Nations. described 18th century English
capitalism. See Why is The Wealth of Nations So Important? A video from  econlib.org/ Provided by textbooksfree.org

Capitalism Characteristics Described by Adam Smith

Private Property (" Laissez-faire ").  The important Creative Destruction ingredient was observed by mid-20th century sociologist
and economist Joseph Schumpeter. It involves the process of technology and improved economic structures replacing inefficient
economic structures. The resulting unmatched economic efficiency has led to confrontation among owners, labor, management and
government as to who gets resulting income. For his thoughts read Dynamic Economics and listen on YouTube to Schumpeter.

Other Economic Systems
Socialism has collective ownership and management of some economic resources with equitable distributed of resulting production. 
Democratic Socialism as practiced in Western Europe had public ownership of key industries such as transportation and communication. Western Europe economies began moving away from socialism toward capitalism in the late 1970's. The change began with England's Prime Minister Margaret Thatcher soon followed by US President Ronald ReaganCapitalism vs. Socialism is a Crash Course Video explores government basics as  does the Laissez fair Capitalism vs. Socialism Video. See Social Democracy.
Communism is the ideal of those practicing a "Marxian System." It was designed by 19th century philosopher Karl Marx. Wealth is collectively owned and managed with a planned command economy. The Paris Commune government that led to the anarchy the late 18th century French Revolution has caused many governments and wealthy individuals to fear changes promised by liberal economic systems. Some equate communism with a totalitarian political system as a democratic communism has never existed.

Fabian Economics of British socialist organizations were gradualist. These reformists did not want revolution. In Russia Bolshevik revolutionists eventually won political support over Menshevik gradualists.
Feudalism
structures society around holding land relationships in exchange for service or labor. New Feudalism refers to a theorized contemporary rebirth of governance, economy and public life reminiscent of a feudal society.
Traditional economy is directed by custom.
Oligarchy is when power rests with a small number of people who may be distinguished by royalty, wealth, family ties, education, corporate, religious or military control. US?
Plutocracy is when wealth rules. Used by developing countries, Plutocrats vs. Populist is controversial.  American Dynasty summarizes the Bush family plutocracy. 
Kleptocracy exists to increase the personal wealth and political power of government officials. Russia?
Theocracy has deity
recognition 
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Abbreviated from Economics_3_Basic_Characteristics_of_Capitalism
 
Modern Capitalism has increasing world-wide competition necessitating up-to-date technology, complex capital goods and a decreasing number of specialized well-trained employees from around the world. 

Economic Rent Seekers increase their wealth using politics. Their influence has replaced that of monarchs and clergy during capitalism's development. Examples include:
1.
Corporate Capitalism dominated by hierarchical, bureaucratic corporations 2. State Capitalism driven by government as practiced in China,
3. Money Manager Capitalism creates and
distributed economic rent using financial markets and
4. Crony Capitalism which began in "the garden" many years ago. As a group these participants seek Corporate Welfare.   Source


Pure Capitalism described by Adam Smith has never been completely put into practice. Instead there have been Mixed Economies combining capitalism and socialism. See
Our Democratic Federalist Capitalist Republic
Turning Points in America's Democratic Federalist Republic
Political Economy Readings
 

Criticism of Modern Capitalism
Ida Tarbell
a Muckraking investigative journalist exposed Standard Oil Trust atrocities. Writing for McClure Magazine and other monthlies, Muckrakers educated the public from 1890 to 1929 Progressive Era. This era demonstrates how the US democratic federalist republic has slowly catered to personal liberty over property interests.
Michael Moore, a modern day investigative journalist, has been critical of capitalism and capitalists. Some question his estimated $50 million net worth.

Philosophical Criticism Readings Why Intellectuals Hate Capitalism
, Is Capitalism Moral? A Commonwealth Club Podcast, Coercive Power of CapitalismCapitalism and Inequality
Political Criticism
Readings Why China Does Capitalism Better than the US, Hoodwinked An Economic Hit Man Reveals Why the  World Financial Markets Imploded--and What We Need to Do to Remake Them, by John Perkins, How Will Capitalism End, Has Capitalism Reform Reached a Turning Point, Revisiting Old Argument About Impact Capitalism, Economic Report of the President 2014 is positive, The Great Recession looks at a recent capitalistic failures.
 
Country Economic Policies
1. Colonialism
occurs when one nation economically gains from political over another nation. The practice has occurred throughout history and has existed with all economic and political systems. See Greece and the Endgame of the Neocolonial Model of Exploitation. Was the creation of Israel an example?
2. Mercantilism is economic nationalism used to build a wealthy powerful state. It is system of political economy designed to enrich the country by restraining imports and encouraging exports. Some feel  Neomercantilism as practices by Japan, China and Germany.
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