1. Capitalism. An economic scheme based on the personal possession of resources and invention inputs, and on the manufacture of wares and services for revenue. The making of goods and services is based on supply and demand in the common market (market economy), rather than through central planning (planned economy). Capitalism is normally characterized by struggle between producers. Other facets, such as the contribution of government in production and ruling, vary across models of capitalism. Advantages a. Economic liberty helps political autonomy. If governments own the means of manufacture and set prices, it perpetually leads to a powerful state and creates a large administration which may extend into other areas of life. b. Decline in cost …show more content…
Communism. Communism is a system of economics where wealth for manufacture is controlled and managed by an essential state power and there is no constraint on the ownership of individual belongings. In communism private possessions as garments, watches and shoes are permissible to be owned by individuals and the accommodation is owned by the country. In communism individuals are given job by the state and payment of this service is made normally in kind. The individuals get the food and ration from the government alongside the education, health and entertainment facilities. Advantages a. Unlike the capitalist nations the communist countries allow its people to get the medical and health care without any cost. The morale of people is enhanced radically on getting the medical facilities of their desire from the government that too with no cost imposed on them. This in turn will allow the nation to develop more. b. The employment of people by the government allows each segment of society to put in his / her share in building the nation. No illegal activities are required for feeding one’s family as state gives food to all. Eventually the crime rate also goes down and nation prospers more. c. A development is seen radically high and economy also