Economy is one of the most important factors that organize society. A definition of economy is the system according to which the money, industry, and trade of a country or region are organized. By how people use money there are two big systems of society, CAPITALISM AND SOCIALISM.
Capitalism is an economic and political system in which property, business, and industry are owned by private individuals and not by the state. Capitalism is controlled through supply & demand and competition. By capitalism individuals are allowed for private property. However criticisms also exist. It can cause unfair distribution of wealth and power, a tendency toward market monopoly or oligopoly, imperialism and phenomena such as social alienation, economic inequality, unemployment, and economic instability. Adam Smith and Karl Marx suggest different opinions about capitalism.
Socialism refers to various theories of economic organization advocating public or direct worker ownership and administration of the means of production and allocation of resources, and a society characterized by equal access to resources for all individuals with a method of compensation based on the amount of labor expended. Asia, Europe, Latin America and even United States are example of socialism.
i think that economy is very important in society
ReplyDeleteSKY (Choi Ha neul)
ReplyDeleteI think the critics are right about capitalism. Korea is the capitalist system,capitalist countries. So that I think we know about the disadvantages of capitalism. The gap between the rich and the poor is getting worse. And persons based on supply and demand, our society have discrimination, disadvantaged. so that the government may be advertised. However, this system is limited, and I think goverment should have to find the other solution.