Economic Systems and Global Models
Capitalism and the Mixed Economy
Capitalism is based on a free market economy, private ownership of the means of production, freedom to work and hire, and state intervention on a small scale. One variation of this is the mixed economy, which involves greater intervention from the state in terms of establishing laws, regulating certain prices, and providing for the social well-being of its citizens.
Communism and Centralized Planning
In Communism, the economy is planned and centralized by the state; the production process is controlled, and the state is the owner of the means of production. Private property and initiative do not exist, only state-owned properties. Its objective is to achieve collective benefit...