1. Summary
People have a need for certain material, so they use their environment to get that. And this represents what we call Economy.
History of Economy begins with the products that people made. In ancient days, the economy had a huge connection with subsistence farming. The exchange is a part of Economy, people usually exchange the goods with the people who related to them. For example, through social relationships. In the Middle Ages, exchange mostly happened through social groups and that is related to conquest in Medieval times. Later, the conquest of many pioneers forms the basis of the global economy.
According to this article, there are two huge parts in economic structure. First is Capitalism. Capitalism is the economic structure which has its purpose in profit-seeking and also controlled by capital. Capitalism made gradual progress by interactions between commodities, money, labor power, means of production and production. The major criticism of Capitalism is that because of characters such as monopoly, it can produce an unfair distribution of wealth. And then the second one is Socialism. Socialism argues that every people have to be paid equally as the price of labor. Socialism is getting more attention in countries such as Japan and Europe. By the way, the critical view of Socialism is still there. The people who criticize socialism said Socialism is inefficient. Ludwig von Mises, who has a critical view of Socialism, described that Socialism is impossible because the country is the only owner of capital goods so the pricing of capital goods is not going to succeed. And there are many methods such as GDP and GNP, which created by people to measure one nation’s economic activity.
2. Interesting/new things I learned
To me, the most interesting part was the measurement which can show you the economic size of countries. I only knew the GDP and GNP, but there was a lot of ways. Also, I was wondering which measurement is the most used in the measure an economy. And in the Socialism part, there are also lots of branches in it, that was also interesting. Especially, It said Marxist Socialist consider Socialism as a step to go to the final perfect phase, communism. Which was very interesting to me.
3. Discussion
In some point, socialism is an alternative to Capitalism, but it’s hard to say that Socialism is perfectly replaced the Capitalism. Many countries who adopt the socialism to their economic system are mostly failed. Just like collapsing of Soviet Union. In these days, most countries economic policies are related to Capitalism, but in this society, we still have such problems. Then, is there an economic system which can function way better than Capitalism?
People have a need for certain material, so they use their environment to get that. And this represents what we call Economy.
History of Economy begins with the products that people made. In ancient days, the economy had a huge connection with subsistence farming. The exchange is a part of Economy, people usually exchange the goods with the people who related to them. For example, through social relationships. In the Middle Ages, exchange mostly happened through social groups and that is related to conquest in Medieval times. Later, the conquest of many pioneers forms the basis of the global economy.
According to this article, there are two huge parts in economic structure. First is Capitalism. Capitalism is the economic structure which has its purpose in profit-seeking and also controlled by capital. Capitalism made gradual progress by interactions between commodities, money, labor power, means of production and production. The major criticism of Capitalism is that because of characters such as monopoly, it can produce an unfair distribution of wealth. And then the second one is Socialism. Socialism argues that every people have to be paid equally as the price of labor. Socialism is getting more attention in countries such as Japan and Europe. By the way, the critical view of Socialism is still there. The people who criticize socialism said Socialism is inefficient. Ludwig von Mises, who has a critical view of Socialism, described that Socialism is impossible because the country is the only owner of capital goods so the pricing of capital goods is not going to succeed. And there are many methods such as GDP and GNP, which created by people to measure one nation’s economic activity.
2. Interesting/new things I learned
To me, the most interesting part was the measurement which can show you the economic size of countries. I only knew the GDP and GNP, but there was a lot of ways. Also, I was wondering which measurement is the most used in the measure an economy. And in the Socialism part, there are also lots of branches in it, that was also interesting. Especially, It said Marxist Socialist consider Socialism as a step to go to the final perfect phase, communism. Which was very interesting to me.
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| https://www.economist.com/news/books-and-arts/21660952-capitalism-not-perfect-its-better-other-systems-whats-alternative |
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