Economic Concepts and Theories
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This paper examines and compares several economic theories used throughout the world particularly as they relate to the current global economic crisis. First, the paper discusses the Keynesian economic system, which the US has been using over the past several years. The paper notes that under this theory, the government can serve as way of providing demand during times of economic challenges. Next, the paper explores a socialist economic system, similar to that used by Venezuela. According to the paper, in this system the government controls key industries, by limiting the profit motive of the individual or business entity. Finally, the paper describes the Communist theory, in which is where the state controls the entire means of production and planning in the economy, citing North Korea as an example of a Communist economy. Additionally, the paper cites the methods used to find the information about these systems. The paper concludes by stating that through examining all three economic models in light of the current global fiscal crisis gives the greatest insights as to how the current recession is affecting the various economic theories.
From the Paper:"To find the best sources of information in doing the comparison of the different economic systems, a search was conducted on the internet. At which point, a combination of search terms was used to indentify the various challenges faced by the system to include: free market, capitalism, communism, socialism, free market challenges, capitalism economic challenges, communist economic challenges and socialist economic challenge. This would provide a basic foundation, as to the overall economic systems currently being used around the world, over the last couple of years. This is important, because the economic challenges have caused some countries to take unorthodox approaches. An example of this can be seen with the United States having to begin using Keynesian principals, to prevent a depression. The method that resulted in the highest amount of hits was when you typed in the key phrases that were relevant to each system (such as: capitalism economic challenges). The method that resulted in the fewest hits was when you used more general keywords or phrases. An example of this is when you typed in the words capitalism, free market, communism and socialism. This would give you everything surrounding each key word. The problem with using such a method is that it was not targeted towards specific areas."
Sample of Sources Used:
- Wall Street Bailout Ease New York's Downturn. (2010, March 2). Retrieved March 3, 2010 from New York Times website: http://dealbook.blogs.nytimes.com/2010/03/02/wall-st-bailout-eases-new-yorks-downturn/
- McCury, J. (2010, February 16). Kim Jong Il Birthday Overshadowed by Health and Economic Fears. Retrieved March 3, 2010 from Guardian website: http://www.guardian.co.uk/world/2010/feb/16/kim-jong-il-birthday- celebrations
- Sanchez, F. (2010, March 2). Venezuela Economy Shrank 3.3%. Retrieved March 3, 2010 from Business Week website: http://www.businessweek.com/ap/financialnews/D9E6P3H02.htm
Cite this Term Paper:
Economic Concepts and Theories (2012, October 26) Retrieved February 02, 2023, from https://www.academon.com/term-paper/economic-concepts-and-theories-151918/
"Economic Concepts and Theories" 26 October 2012. Web. 02 February. 2023. <https://www.academon.com/term-paper/economic-concepts-and-theories-151918/>