Economic System
There are various types of economic systems that are used across the world. They include socialism, communism, and capitalism. An economic system incorporates the rules in a nation that determines the production process in providing goods and services. The United States has a mixed economy for a significant portion. Having a free market is the most vital feature of the American economy, which means that there is a freedom to purchase and sell in a competitive setting (Beard, 2012). The U.S. scheme has regulatory elements that make it a trait of a command economy.
The United States government has been developing laws in specific industries to guarantee a reasonable price for its people since the Great Depression. It eventually led to a change from being pure capitalism to improving the current mixed economy. Since the late 1970s, China has changed from a closed economic system to a market-oriented one that plays a vital role in the world. It has executed modification in a gradualist fashion that leads to efficiency gain contributing to an increase in Gross Domestic Product (GDP) (Mijares, 2017). Russia has experienced an essential modification from a planned economy to a market-based scheme after the fall of the Soviet Union. Currently, the economic growths and reforms have stopped; thus, Russia has remained a statistical economy with great riches among those in authority. Economic reforms have privatized a considerable number of industries with exceptions in electricity, transport, and defense firms.
The political system entails the set of the legal institution and constitutes a government. It incorporates both real and the prescribed types of political conduct through the functioning reality of the state. It is perceived to be a collection of interaction processes that interact with other systems, such as the economic system. There have been various political systems in the past; the Athenian democracy and an absolute rule (Banton, 2012). The knowledge of political systems gained from my experience is that the development of supranational relationships is the main effect of the world’s division into several distinct institutions. The countries that have contact with one another, they share similar objectives and face common threats. I have understood that these relationships are short-lived in various circumstances and do not lead to vital state development. They donate to intergovernmental organizations and supranational structures.
The democratic political system is a system I lean towards since the United States is a democratic representative. It is a representative central democracy which is driven through elections. Citizens can elect both the state and the local government officials who come up with rules governing U.S. society (Banton, 2012). The political parties control the political system in practice since there is nothing in American law in need of it. Democrats and Republicans, in rare exceptions, decide on elections. Despite individual candidates being voted through people’s choice, a considerable number of the applicants are either party. Citizens in the United States politics are not the only players; there are special interest groups that affect lawmaking and elections. The impacts have become intense such that people wonder if the U.S. is a people’s democracy or a particular group.
Capitalism has become a new time since it is discredited socialism. Countries across the world are removing trade restrictions and opening up their market. The United States has experienced the most extended period of growth and has created a technology explosion that shapes social structures and extends human life (Bohle & Greskovits, 2012). The criticism of free markets focuses on manufacturing problems claiming that capitalism could not be managed and was ineffective. It is through the controlled economies that would harness resources, thus creating wealth. Therefore, capitalism is likely to produce great wealth, which unfairly distributes wealth were more affluent are becoming more productive and more miserable.
Capitalism is a zero-sum game where a win from one person is a loss to another; thus, inequality and injustices becomes extensive. Eventually, the Soviet Union collapsed, and millions of people were left mired fighting poverty as West created wealth on a scale never planned (Bohle & Greskovits, 2012). Even when the income disparity was increasing, there was an acceleration in income mobility. Prosperity was becoming a commonplace wherein its ancient sense was being eliminated.
In politics, the process of making public choices is defined to be a political system. It is linked to social, economic, and cultural structures (Bartels, 2018). However, a limited view of a much more complex system of classification incorporates issues concerning who to have power and effects the government should have on its economy.
An economic system entails a system of industrialization, the share of resources, and the supply of goods and services within a specific location. It is a combination of various organizations, processes in decision making, and consumption habits consisting of the community’s financial structure (Bartels, 2018). Therefore, an economic system is a kind of social network, and the production model is an idea connected to it. What to generate and how to generate is the most critical concern in all economic systems.
References
Banton, M. (Ed.). (2012). Political systems and the distribution of power. Routledge.
Bartels, L. M. (2018). Unequal democracy: The political economy of the new gilded age. Princeton University Press.
Beard, C. A. (2012). An economic interpretation of the Constitution of the United States. Simon and Schuster.
Bohle, D., & Greskovits, B. (2012). Capitalist Diversity on Europe’s periphery. Cornell University Press.
Mijares, V. M. (2017). Soft balancing the titans: Venezuelan foreign‐policy strategy toward the United States, China, and Russia. Latin American Policy, 8(2), 201-231.