Three Separate Economic Systems That Have Greatly Impacted The World

Jennifer Leet

12

Cult and Civ 2,

Essay Question 1 Throughout this class we have learned about three separate economic systems that have greatly impacted the world. The first system was mercantilism which basically was a single “mother” country that would control what was traded and controlled the industry. After mercantilism, we learned about capitalism. Being in a capitalist society means that the industry has no attachments to the government unlike mercantilism which is run by the government. And finally, we learned about Marxism, which is more of a theory if anything. Marx believed that capitalism would fall because of the working class citizens that put all the effort into their work and receive little in return would revolt. If they revolted Marxist ideas theorized that the economic system would ultimately have a downfall and lead into a socialist society. Socialism is basically the opposite of capitalism. The industry and the money would not be going to the corporation it would be divided amongst the community.

Like stated in the first paragraph mercantilism is an economic theory that a “mother” country would control all of the trade of smaller countries. The basic principles stated, that a countries wealth would be determined by the amount of precious metals it has. The precious metal is obtained through creating relations with international countries and trading their goods with each other. In the 1700s the whole goal or objective of mercantilism is to cut out the competitors and increase production to have more exports than imports. More exports meant that they would be receiving more money and more metals that would show how economically wealthy they are compared to other