Different Economics Models, Different Results.
Jorgen J. Ramirez
Miami Dade College
Principles of Macroeconomics
Different Economic Models, Different Results.
Believe or not, each person is free to decide which economic model is the most suitable for its company or business; well, the same idea applies for countries. Each country has the freedom to choose whichever economic model is going to be their guidance for its economic development. Choosing between 3 options sounds easy, but it is not easy. Capitalism, socialism, and finally mixed economics are the three basic economics models that have been around the world since the beginning of the economics’ studies. Each ...view middle of the document...
This competition is going to always be good for the consumer. They will always get new products, lower prices, and so many options to choose. A well known example is the competition between two cellphone companies in United States, T-Mobile and AT&T. Recently AT&T lower their prices on different family plans; they did this in order to compete with the lower prices that T-Mobile was already offering.
On the other hand, there is the socialism system. Contrary to Adam Smith, one of the most important defenders of the socialism was the german philosopher Karl Marx. Max argued in his work (1867) Capital: A Critique of Political Economy, Vol. I. The Process of Capitalist Production. that “capitalism contained the seeds of tis own destruction”. Marx thought that socialism was the most suitable economic model for a nation. A socialism is found when a a government decides how distribute and use the nation’s resources. There is no competition between the companies. The government is the owner of almost or all the companies in the nation. According to Marx, this economic model was more successful than the capitalism because the workers felt a personal connection in the process of production of a good. Also, the owners were able to feel a connection with their labor force. Karl Marx did not agree with the idea of the capitalism system because he tough that the only one who was getting profits and benefits were the owners of the different companies. He believed that the workers remained with the same salary, the same poor conditions, and no labor security despite the company made more profits. Marx’s ideas about capitalism were the worst. Capitalism was disrespectful, and unfair way of running a nation’s economy. Both of the philosophers did not came to a middle position or mid point on their viewpoints. While Smith was always rooting for the capitalism, Marx was always praising the socialism. In some cases, capitalism is not very successful, Spain economy was based in a capitalism model, and nowadays are suffering one of their most difficult economy periods as a nation. Sometimes,...