Posting4(W4), joonhee lee

summary

Economic grows with the society. Until the Middle Ages, the economy is made in a narrow range. But, it was made a full-fledged scale growth after Europe developed the new world. There are the concepts that can explain the economic system of the modern society (capitalism and socialism).

'Capitalism' is that  people with the mean of production have commerical benefit. Capitalism has been developed to interact with five elements (goods, money, labor, production, value of goods), particularly the value of the product can varies depending on supply and demand of the market. Capitalism can gain more profit when individual have more ability, but there is a disadvantage that encouraged overly wealth gap between rich and poor.

On the other hand, 'Socialism' claims the means of production are state-owned. Government replaces the role of the market and determines the demand of the product, amount of product required to analyze the feed rate, price and so on. And it is the biggest feature Socialism had.Socialism is less likely to occur than the economic inequality of Capitalism. However, many governments are insufficient to determine the price point of the product and socialism is itself inefficient. Also, there is 'informal economy' in all economic systems are not affected by the national tax and monitor.

mention

Before this posting, ldidn't know accurately about gap between 'Capitalism' and 'Socialism'. So, I studied this point more careful than before. And reading the part of'Gini Coefficient', I think about the inequality in Korea(p.s Korea's income inequality was about middle class).

Question

In part of 'informal economy', informal economy included most of informal commerical action though it is illegal. but, if this movement were illegal,Wouldn’t we don't ackowledge something illegal ?