Social Institution of Economy
An Economy can be defined as “the institution that provides for the production and distribution of goods and services, which people in every society need.” We rely on people to supply goods and services. But some of us also may provide some of those goods and services. But how do we go about getting those goods and services? We have to have some sort of exchange or currency. Here in the United States we have money, we have dollar bills and we also have coins, because we are a more industrialized society. But other countries may use a form of currency in an exchange for another gift or service. (Social Institutions: Economy, SparkNotes)
There are two economic systems that are most dominant. They are capitalism and socialism. A majority of societies use a mixture of they two. When you use a mixture is is often called welfare capitalism and state capitalism. (Social Institutions: Economy, SparkNotes)
Capitalism can be defined as “a system under which resources and means of production are privately owned, citizens are encourage to seek profit for themselves, and success or failure of an enterprise is determined by free market competition.” To put it into perspective, we can use the United States for an example. We do have privately owned businesses but the government does regulate these businesses. (Social Institutions: Economy, SparkNotes)
Socialism can be defined as “a system under which resources and means of production are owned by the society as a whole, rights to private property are limited, the good of the whole society is stressed more than individual profit, and the government maintains control of the economy.” An example of a socialism society would be China. The natural resources is owned and controlled by the government. (Social Institutions: Economy, SparkNotes)
You can use a mixture of the two, such as welfare capitalism. It can be defined as “a system that features a market-based economy coupled with an extensive social welfare system that included free health care and education for all citizens.” To look at this we can look at Sweden. They do allow the people to own their businesses privately, but the government is still allowed to control part of the economy. They do have high taxes to support all of that free education and free health care. (Social Institutions: Economy, SparkNotes)State capitalism is also another one that blend socialism and capitalism. It can be defined as “a system under which resources and means of production are privately owned but closely monitored and regulated by the government. South Korea is a good example of this. The government works very closely with the major companies in South Korea so that they can ensure their success. (Social Institutions: Economy, SparkNotes)
We have our wants and needs. We will always be consuming products, sometimes faster then they can make them. But we need to have a way to regulate these sales.
There are two economic systems that are most dominant. They are capitalism and socialism. A majority of societies use a mixture of they two. When you use a mixture is is often called welfare capitalism and state capitalism. (Social Institutions: Economy, SparkNotes)
Capitalism can be defined as “a system under which resources and means of production are privately owned, citizens are encourage to seek profit for themselves, and success or failure of an enterprise is determined by free market competition.” To put it into perspective, we can use the United States for an example. We do have privately owned businesses but the government does regulate these businesses. (Social Institutions: Economy, SparkNotes)
Socialism can be defined as “a system under which resources and means of production are owned by the society as a whole, rights to private property are limited, the good of the whole society is stressed more than individual profit, and the government maintains control of the economy.” An example of a socialism society would be China. The natural resources is owned and controlled by the government. (Social Institutions: Economy, SparkNotes)
You can use a mixture of the two, such as welfare capitalism. It can be defined as “a system that features a market-based economy coupled with an extensive social welfare system that included free health care and education for all citizens.” To look at this we can look at Sweden. They do allow the people to own their businesses privately, but the government is still allowed to control part of the economy. They do have high taxes to support all of that free education and free health care. (Social Institutions: Economy, SparkNotes)State capitalism is also another one that blend socialism and capitalism. It can be defined as “a system under which resources and means of production are privately owned but closely monitored and regulated by the government. South Korea is a good example of this. The government works very closely with the major companies in South Korea so that they can ensure their success. (Social Institutions: Economy, SparkNotes)
We have our wants and needs. We will always be consuming products, sometimes faster then they can make them. But we need to have a way to regulate these sales.
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http://www.sparknotes.com/sociology/social-institutions/section1.rhtml
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