The definition of an economy is how people use the environment to meet their material needs.
There are two systems that are related to the economy. It is capitalism and socialism.
Capitalism is a social organization that recognizes the private ownership of goods as an inalienable basic right of social members. Capitalism is an economic system based on private ownership.
However, such capitalism is criticized for unfairly dividing wealth and power.
In contrast, socialism is based on a shared-interest human view that opposes the private ownership and minority management of the means of production and places the highest value on communism and realization of the greatest number of happiness. Socialism aims at a cooperative economy where resources are efficiently distributed and production means jointly operated, and a society where all people are fairly and equally distributed in exchange for labor. However, such socialism criticizes economic and political models as incompatible with the freedom of civil society. Hayek also criticizes the socialist alleged social control over the distribution of wealth and private property cannot be achieved without public prosperity and loss of political and economic freedom.
2.mention of any new, interesting, or unusual items learned;
As an example of socialism, I think the story of Asia's People's Republic of China is interesting.
China is a socialist country, as many people know. However, for economic growth, some of the trends of capitalism were accepted. So even though China is a socialist country, it is emerging as a global economic powerhouse with tremendous economic growth unlike other socialist countries. I think there must have been many ideological confrontations to follow the economic propensity of capitalism with socialist ideology. However, I thought it was interesting to see China where the two opposing ideologies are being used together.
3.discussion
Korea follows the capitalist economic system. However, capitalism has been criticized for leading to inequality. What are some ways to solve this? (excluding government welfare policies)
A solution that the government doesn't intervene.
ReplyDeleteIf the inequality of capitalism becomes too severe, capitalism will collapse and a new society will be born. Before that, I think people with a lot of wealth and power should be aware of this and give it to people in need.