The first type of economysystem is a traditional economic system. Traditional economic system is aframework related to traditions, customs, history and beliefs that help shapethe goods and services, as well as the rules and manner of their distribution.It’s usually incapable of generating the similar amount of yield than the othertypes of economies produces. It also usually depends on agriculture.
Next is commandeconomic system. For this economic system, the government controls most partsof the economy activities. Since a large portion of the production decisions ismade by the government and there is no any of free market in this system, it isalso known as planned economic system. The followingeconomic system is market economic system. This system, however, is theopposite of the previous economic system, whereby it relies on the free marketsand it does not allow any kind of government involvement in the economy. Forthis system, the entire of it is regulated by the authority people and the lawsof supply and demand, the government does not control any relevant economicsegments.
Last on thelist is the mixed economic system. For this system, it is a combination of themarket economic system and the command economic system, a mixture of two systemhence the name. Most of the industries that are involved in this system areprivately owned whereas a small number of public utilities and the servicesstill remain in government controls. In this system neither the private nor thegovernment sector alone can maintain the economy, they both play a criticalpart in the success of this system.
Every economicsystem have its own advantages and disadvantages. The first economic systemthat I wanted to share is the traditional economic system. I will discuss aboutthe advantages followed by the disadvantages. Traditional economic system, isnotable that they contribute towards the people, such as farmers, hunters andalso wearer. For this economic system, there is some to little friction betweentheir society members because the traditional and customs that direct thedispersion of the assets yet the general public individuals comprehend what arethey liable to get. Besides that, this system also has its’ disadvantages.
Theyconstrain population of growth mainly because they are defenceless to themarket economies and the command economies because the general public consumethe traditional economies natural resources depends on the wage war. The nexteconomic system is command economic system. Command economic system does haveits own advantages also.
The resources in this economic system are rapidly andviably prepared on a substantial scale. And its industrial power is somethingcreated as enormous undertakings finish while accomplishing the basic socialobjectives. Not only that, this framework is able to transform enormousundertakings finish while accomplishing the basic social objectives.. However,this economic system have its disadvantages also. This will cause the blackmarket explode in a command economic system.
And it is due to the governmentrestrictions, goods and the services are not offered in this economy whichleads it started to be offered in the black market instead. Besides that,sometimes the amount of the goods that are produced are imbalance. This is dueto sometimes one product will be mass produced so that the other will not haveenough to support the economic needs. Sometimes the exporting goods will beproblematic because they have difficulty for the controlling entity to figureout which items and costs will be best inside the market. Furthermore,the focal points for the market economic system are the competition will leadsto the efficiency. This is because the businesses that have less expenses aremore aggressive and consequently makes more benefit.
Besides that, a few organizations endeavor toseparate themselves so they can let an extensive assortment of products andenterprises accessible in the market. However, market economic system has itsdisadvantages also. The health and safety cost will be reduced, at timesdrastically, as the cost will reduce the profits and this cause the poorworking conditions. All this is done because of the lack of governmentregulations. Last but notleast, is mixed economic system. For this system, it has the power to creates abalance in regional developments because of the planning commission of acountry will be able to create policies for the improvements of every region.
And not only that, the government would also try to develop each sector of thepopulation. The advantages is it creates a quick economic development. In mixedeconomic system, the economic development will be quicker because both thepublic and the private sectors can operate equally. So, after listing the goodsof this economic system, we can now going to talk about its disadvantages.Mixed economic system will brings about the fear of nationalization. Because ofthe government have the ability to own and nationalize any industry while theprivate and public sectors coexists.
In my opinion,I supported for the mixed economic system. This is because I think that bothpublic and private corporate and done something together is easier than doingalone. And it’s like sometimes we faced the problem that only can be solve by thegovernment sides and sometimes we face the problem that the private sides cansolve. So it let me think that it will be easier.