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Apr 22­11:11 AM

Each of the ends of the Economic Spectrum represents a theoretical economic system (Market vs. Centrally Planned.) In theory, these systems rely on a few basic principles (or pillars) each. These pillars are the basic values that the theory is built upon.

Pillars of the Different Economic SystemsPillars of Economic Systems on­line help and QUIZ

Apr 5­7:35 PM

http://www.blackgold.ab.ca/ict/Division4/Social/Political%20Spectrum/index.htm

Economic Spectrum

MIXED

COMMAND ECONOMY MARXISTPUBLIC ENTERPRISECOMMUNITY GOOD/WELFAREECONOMIC EQUALITYSOCIETYGOV'T OWNERSHIP OF MEANS OF PRODUCTION

'LEFT WING' 'RIGHT WING'

'CENTRIST'

CAPITALIST ECONOMYLAISSEZ­FAIREPRIVATE ENTERPRISEINDIVIDUALISMFREEDOMCHOICEINDIVIDUAL OWNERSHIP

HAS ELEMENTS OF BOTH

= Higher Taxes = Lower Taxes

MARKET ECONOMYPLANNED ECONOMY

Apr 22­2:09 PM

Information and Assignment on IDEOLOGIES & SOCIETY

dealing with the relationship between political and economic ideasusing the spectrum

http://content.blackgold.ca/ict/Division4/Social/Ideologies/ideology.swf

http://www.learnalberta.ca/content/sspes/index.html

Economic and Political Spectrum & How they Interact

Apr 22­12:13 PM

MarketEconomy

Competition

PrivateOwnership

Individualism(ConsumerSovereignty)

Profit

FreedomSelf­regulatingMarket

Pillars of the Market* Economy

*aka:CapitalismFree Enterprise EconomyPrivate EnterpriseLaissez­faire

Examples: USA, Japan

Apr 22­1:26 PM

Profit: Individuals and businesses are motivated by economic self­interest.

Competition: Many producers vying for consumer favor will increase quality and lower prices of goods and services.

Individualism: Individual should have the power to provide their labor and combine land and capital as they please. Individuals should also be free to purchase and sell goods and services as they see fit.

Private Ownership: Land, labor, and capital are best put to use when owned and controlled by individuals, NOT the gov't.

Freedom/Choice: Individuals must be free to choose from a wide variety of products; producers should be free to provide the goods and services that consumers demand.

Market: The law of supply and demand will regulate the market. Government should play a minimal role in the economy.

Pillars of a Market Economy Explained

Adam Smith, the father of market economics

Apr 22­11:36 AM

Equality

Centrally PlannedEconomy

CommonGood

Public Ownershipof Everything

Cooperation

GovernmentControls Factorsof Production

Pillars of the Centrally Planned* Economy

* also called:Command EconomyCommunistMarxistSocialist

Examples: Cuba, China,North Korea, former USSR

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Apr 22­1:23 PM

Pillars of a Centrally Planned Economy Explained

Common Good: All citizens are motivated by the idea of collective welfare

Co­operation: Better quality products and services will be produced if all interested parties co­operate and are directed efficiently

Central Control: Land, labor, and capital are too valuable to allow repetition and waste. These can be eliminated by strong government control and direction of the economy

Public Ownership: All citizens have equal rights to share in land, labor and capital

Equality: All citizens are equal (comrades) and should all enjoy the same standard of living with equal access to the means of production.

Apr 12­8:28 AM