Pros and Cons of Economic systems PDF

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Details the pros and cons of economic systems....

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The Pros and Cons of Economic systems. By Alex Gutierrez

Pros and Cons of the Communist System in China. China being one of the best examples of this system is what we are going to use to explain, one Pro this type of system has is its homelessness. The Chinese government has lifted more than 850million people out of poverty, this is explained further in this passage from “The World Bank in China”. “Since China began to open up and reform its economy in 1978, GDP growth has averaged almost 10 percent a year, and more than 850 million people have been lifted out of poverty.” Of course this doesn't come with many, many cons that we have to take into account. A major con this Chinese system has is its Gini Index being almost 50, the higher the Gini Index is the higher the inequality with high income individuals. These top 10% are receiving a much larger percentage of the total income of the country, making it harder for lower class individuals to get started. Another huge con comes from the text “The World Bank in China.” This sentence from the text: “China is the largest emitter of greenhouse gases, and its air and water pollution affects other countries.” Explaining clearly that China is the largest emitter of greenhouse gases, this is awful in many different ways. The way the Chinese economy is set up means its biggest money maker results in these awful amounts of greenhouse gases which ruin the environment.

Pros and Cons of Denmark's Mixed-Market System. “Denmark is a country in Scandinavia, in Northern Europe. Its economic system blends mixed-market capitalism with elements of socialism. “ Denmark is one of the countries that many people praise for mixing Capitalism and Socialism so well, but, is that true? A huge pro in this type of economy is taken directly from ‘Denmark: Economics’ saying “This thoroughly modern market economy features advanced industry with world-leading firms in pharmaceuticals, maritime shipping, and renewable energy, and a high-tech agricultural sector.” This passage is pretty self explanatory, Denmark is a modern example, and one of the best countries with a Mixed-Market system, it's a leader in many modern markets, like the pharmaceuticals and renewable energy. Another huge pro to take into account is Denmark’s economic growth. A Lot of countries boom in economic growth followed by a decline, like the US during the great depression, however Denmark is growing slowly in economics, this being a good thing. However, with so many pros there is bound to be a con somewhere, and this comes in the form of Denmark's Taxes. Taken from ‘Denmark: Economics.’ “Taxes include personal and corporate income taxes, value added taxes, excise taxes, and tariffs.” All of this makes Denmark’s taxes rise to a huge amount, Denmark’s citizens having to pay up to half their income in taxes, making Denmark have one of the worlds highest taxes.

The Pros and Cons of the UK’s Mixed-Market System Much like Denmark, the UK has a mixed-market system. A big pro of the UK’s system is its advanced economy. “The UK has one of the world’s most advanced economies, and its capital, London, serves as a center for global trade.” Global trade being one of the most important aspects a country has to consider. Another pro the UK has is its highly mechanized agriculture, taken from ‘United Kingdom: Economics.’ “Agriculture is intensive, highly mechanized, and efficient by European standards, producing about 60% of food needs with less than 2% of the labor force.” This sentence tells us that less people are working in agriculture, making for an easy way for the UK to make money. This however does come with a con, poverty. Less jobs, less ways to make money. The UK has about 7.7% unemployment rate, on paper it might not seem like alot, but considering that 7% of the population in the UK is around 475thousand people, it becomes a lot more clear how this is a terrible thing. The UK has faced many issues with its economy, such as the 2008 global financial crisis, this appeared to hit the UK especially hard. Taken from ‘United Kingdom: Economics.’ “Falling home prices, high consumer debt, and the global economic slowdown compounded the UK’s economic problems, pushing the economy into recession in the latter half of 2008 and prompting the then BROWN (Labour) government to implement a number of measures to stimulate the economy and stabilize the financial markets.” This passage shows many of the effects of the global financial crisis which hit the UK pretty hard....