Political Economy Options:
US Chose Capitalism
1. Capitalism Defined 2. Other Economic Systems 3. Socialism Explored
Source Economics Ch 3 Basic Characteristics of Capitalism
1. Economic systems determine what
and how goods and services are produced.
Four factors of production: land, labor,
capital, and enterprise are mixed
with resulting
excess
paid to owners as
rent, wages,
interest and profit.
2. Capitalism Begins With Private
Property, Freedom of Enterprise and
Limited Government.
Creative Destruction happens when new technology and improved
economic structures
replaces both inefficient technology and inefficient economic structures.
It's what the US capitalism does best.
CD has led to unmatched
economic efficiency.
Historically, distribution of ever increasing excess among factor owners
and government
has intensified confrontation.
Capitalism, managed with democracy,
will determine how artificial intelligence
and other change affects
rent, wages, interest,
profit plus the
continuation of
Creative Destruction
2. Communism
has government ownership
and management of all property.
The Paris Commune government that led to the anarchy the late 18th century
French Revolution caused many governments and wealthy
individuals
to fear changes promised by a liberal capitalistic economic systems.
To date,
Communistic economies have been totalitarian government systems.
All are failed economic systems and govern by force.
3. Socialism
has centrally planned social programs to help with necessities
as economy moves toward a more equitable (not equal) distributed of all production.
2-page study of
socialism
3. Mixed Economy, like the US,
combine
capitalism and
socialism private property in control with
government/business managed insurance programs like Social
Security and Medicare
and government paid social programs like Medicaid.
5.
Democratic Socialism as practiced in
post WW 2 Western Europe
had
public ownership of
key industries such as transportation and communication.
Western Europe economies began moving away from Democratic socialism
toward increase private property in the late 1970's. The change began with
England's
Prime Minister
Margaret
Thatcher. It was soon followed by US President
Ronald Reagan.
6. Mercantilism
is
economic nationalism to increase the prosperity
with trade practices
designed to increase exports.
7. Colonialism
accumulates wealth with
control over business operations of another nation.
The
practice has occurred throughout history and
has existed with all
economic and political systems.
9. Fabian Economy
of British Socialist organizations were
gradualists.
These
reformists
did not want revolution. In Russia,
Bolshevik revolutionists eventually
won political support over
Menshevik gradualists.
10.
Feudalism structures society around land holding relationships
in exchange for service or labor.
See Political Economy Options Government