Vision of Model Economic System

Vision of Model Economic System
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Vision of Model Economic System
The Economic system includes both tangible and intangible economic activities that occur in the society. The systems answer questions concerning goods and services to be produced, the way these products are produced and consumers who consume these products. The various economic systems include command economies, market economies, and traditional economies. In the current world, most economies are mixed based on the features of command and market models. The aspect of capitalism and socialism is currently playing a critical role in the economic system. Combining the two economic systems is based on a model economic system that focuses on the middle class. Therefore, taxation is usually focused on the rich at a higher percentage.
Capitalism is understood as an economic system that is mostly exhibited in the private ownership of a means of production to maximize profit and ensure market competition. This type of economic system gives the power to the owner of the products or profits that are to be achieved. The capitalist system gives freedom to individuals to operate in the market. However, the government normally provides regulations and laws that protect its citizens (Lepsius, 2017). On the other hand, socialism is an economic system that is constructed around the public ownership to ensure means of production, central planning and effective distribution of goods with no profit motive. This economy is owned by the government and has no competition for the goods and prices of commodities. The government owns everything whereby the production of goods is not aimed at profit making. The goods and services are meant for satisfying the economic needs instead of for profit gains (Lepsius, 2017).
In the socialist spectrum, the government runs everything hence the citizens usually remit the higher percentages of their incomes for the various facilities that are given back to the public. Such facilities include healthcare systems, education syste...