KIM JI EUN (김지은) . W4

#SUMMERY

-ECONOMY-

(By unknowns (Open clipart) [CC0], via Wikimedia Commons)

There are a definition of the economy, economic history, Capitalism, Socialism and the measurement tools for economy. It's range from the economy of ancient based on subsistence farming to current economy according to the theory of Adam Smith. Capitalism is economic system that is dominated by capital for the purpose of the pursuit of profit. Capitalism is worked by commodities, money, labour power, means of production and production. Also, in capitalist, competition is an important factor. Because competition determines wage rate of workers. There exists criticism of these capitalism. It's because capitalism causes unfair distribution of wealth and power. Socialism ideology is shown pointing out these contradictions of capitalism. Socialism is economic principles that think social distribution is important by transmit individualism that is capitalism economic principle to socialism. There are many example in China, Vietnam, Laos, Vietnam, Ireland, France and Venezuela, etc. These socialism gets criticism that social control of personal property distribution brings the loss of prosperity in the public and political, economic freedom. There are economic measures like GDP, Exchange Rate, Gini Coefficient, etc.

 

#MENTION

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I had contacted an economic system, a political system while studying essay writing in 2013-2015. Although I have learned that Socialism differ from communism, I unconsciously tended to think Socialism is similar to communism. But, reading these link, I can definitely distinguish socialism from communism even more before.

 

#QUESTION

Hayek said social control of personal property distribution brings the loss of prosperity in the public and political, economic freedom. But do you think so? Do you think paying much tax brings prosperity in the public and political, economic freedom? Norway as an example. People in Norway pay the much amount of the tax. But there is few people with dissatisfaction about it. There are many welfare benefits as it. Free treatments about serious illnesses really needed, Free in education to universities are available. They live comfortably without worrying about money, life and enjoy various hobbies. I think this is the prosperity and freedom. It's the same logic in Nordic nation of social democratic tendencies like Denmark, Finland, Sweden. They consummate social equity to decrease gap by paying each different tax according to personal income and giving low-income those to benefit welfare. Capitalism is rather to promote competition and polarization would only deepen.