Economic System Comparison Standard

The world functions based on the economies of the many different nations. This is why it's important for the individual nations to choose the economic systems which are the most efficient at achieving the country's broad social goals. Every country has different economic systems, making each country much different. For example, China has a command economy, where the government makes all of the decisions for the people, and the people have very little freedom as to what jobs they want to work and how they spend their money. The United States has more of a mixed economy, where people are allowed to make their own decisions for the most part, but the government can intervene to a certain extent. Both of these countries have different ways of achieving their broad social goals.

In the United States people are allowed to buy whatever they want, shop wherever they want, and work wherever they want. In this sense, the United States has more of a market economy, however the government still has a small sense of control of the economy in the United States. The government regulates sales taxes, income taxes, minimum wage requirements, hourly requirements, and helps to prevent monopolies between businesses. Therefore, the United States is an intermediate of a command economy and a market economy, but more so leaning towards free market. In the United States, innovation is greatly stressed. People are very motivated to create new things, because consumers are always wanting new things instead of the same old product, because people are allowed to buy whatever they want in their economy. One problem with the United States' economic system is the joblessness rates. No one is guaranteed a job in the United States, making it difficult for everyone to have an equal opportunity at achieving economic success. However, there is a minimum wage requirement which makes people with jobs slightly closer to being equal. Overall, the people in the United States have a lot of economic freedom, while the government still protects consumers.

On the other hand, in China the government has complete control over the people, businesses, and all of the income. People have very little economic freedom, they aren't allowed to choose the job they work at, the products they produce, the pay they receive, or the products they buy, the government does it all for them. However, as far as employment goes, the economic system works great at achieving this broad social goal. The government guarantees every citizen a job for their life, however they may not be able to choose what it is. In China, innovation isn't greatly stressed, because the government doesn't actually want much change, as well as the fact that the government fears the people gaining too much knowledge and finding out that they don't really like the government that they're in. Since the government decides what will be made, and innovation is a fear, people aren't very creative about creating products. Overall, the people in China have very little freedom, but are guaranteed a job and aren't required to innovate.

China and the United States have two very different economic systems, but which is more successful? The objective of an economic system is to achieve broad social goals, while still making the most money possible. The United States accomplishes their broad social goals in a way in which the people are much happier with the economic system that they're a part of, however people's happiness isn't the only aspect to an economic system. The per capita GDP in the United States is $41,800, as compared to China's per capita GDP of only $6,800. The United states obviously does a much better job at achieving broad social goals, as well as putting the most money into the economy. China doesn't gain as much money in their economic system because of the fact that people aren't motivated to produce more; they're only going to make as much as their neighbors regardless of how hard they work, so why work harder? In the United States, we're all hard-working, and very driven to make that dollar, causing people to make more money in the long run. The United States is much more efficient at solving their broad social goals while maintaining a great amount of money.

Different economic systems make different strides at achieving their broad social goals. Each economic system was put in place for a reason, typically the system which people think is the best for them. A mix of the economies seems to be working about the best, but each economy type is used in different ways successfully around the globe. Economic systems make up the way the world works, and everything will remain revolving around the economic systems of the nations of the world.