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This economy allows people to somewhat do what they want to do in business. If you want to open a business, and have the money and knowledge to do so, the freedom is there to do so. The same way for the consumers (us); we somewhat have the freedom to buy and sell in our economy. This system embraces the private sector, which is the people, rather than the public sector, the government. However, in recent years, this economy has started to embrace views that command, socialistic, and communistic economies embrace.
There has been more government control in the economy, which means less freedom or people to start their own business or less to gain from workmanship. Without entrepreneurship and workmanship, an economy cannot survive well. A socialistic economy (or a command economy as commonly referred to) is an economy in which the government has control over all that deals with the economy. In other words, the government controls the wages of the people, determines where the people can and cannot work, controls the businesses.
The people don’t have the freedom to choose, and therefore, have no motivation to work and to gain profit or make business. IOW advantages to a socialist economy are governmental services Tort all teen people (healthcare, education, military, etc. ), and the people are often guaranteed a Job. But with advantages come disadvantages. Some of the disadvantages include: little or no freedom, what people say and do are usually controlled, and no matter how long or how hard the person works, everyone gets paid the same.
Those services that everyone is provided, like healthcare for everyone, are inefficient and ineffective. People that have diseases or need medical attention will usually die before they get latherer because they have to wait for a long time, and when they do receive healthcare, the doctors are often times under skilled or under equip to treat a disease. Those are the disadvantages, and they out weigh the advantages. Here is another example of a socialistic economy. The picture to the right side shows a satellite image at night of the Korean Peninsula.
The lights represent industrial production. There is clearly a difference between command/communist nation North Korea, and the free economy nation of South Korea. Freedom of business and production equals a better and flowing economy. North Koreans economy now has a poor record of exports, an enormous amount of debt, and trade agreements only to communist nations. That is what happens to a nation that embraces the views of a socialistic economy. What does this have to do with America, the free market nation?
Well, America, in recent years, has adopted some policies that don’t work well in a free market, or in any market for that matter. One good example is the North American Free Trade Agreement, or NONFAT. NONFAT eliminates the tariffs (taxes on imported goods) and other restrictions between the countries of the US, Canada, and Mexico. This put a burden on our nation, because we ended up giving billions of dollars to the World Bank. Other programs include Social Security, which takes money out of the taxpayer’s pocket and put its back into the government for the “benefit” of the taxpayer.
However, upon retirement, it’s not guaranteed that this person would get it. Another form of these socialistic programs is Medicare, where a person who is elderly, or has been disabled for two or more years gets their healthcare covered by the government. This seems like a help, but, in reality, it’s more harm than help. The Medicare recipient receives his/hers healthcare and medications covered, which is good, but he/she is only limited to so many treatments and a certain amount of medications due to constant changes in the system.
Also, there are many healthcare providers that do not cover Medicare. If you find a healthcare provider that takes Medicare, often times the quality of the healthcare goes down because he/she is on Medicare. What does this do to America? The economic system in America is the free market, and in a free market economy, the private sector (businesses, etc. ) make the majority of decisions in economy. When the government has these programs, they require teen taxes Trot tense Duskiness’s. I en private sector takes teen appearance AT the goose in the fable “The Goose That Laid the Golden Egg. They take advantage of the success and worth of the private sector’s “golden eggs” in that they become too dependent and greedy. Eventually, as the story ends, the owners of the gold laying goose cut open the goose because they thought it was completely gold inside, and it wasn’t. This could be the outcome of the private sector. Another problem that we have in our country is outsourcing, which is sending a many to another country. The reason for doing this is because technically it is cheap labor.
The people of the country in which the company outsourced labors cheaper than Americans and America will get the productivity of the company. Because of the increase in Jobs of the outsourced company, the country economy benefits from outsourcing, but this harms our economy because then there are fewer jobs for Americans. This hurts the economy by stopping the circular flow of money. It stops the wages and profits from coming into the household, therefore slowing nonuser spending, which goes to the businesses, as shown in this diagram.
If we cut businesses to provide the wages and profits for household, then how can the household have consumer spending? Getting rid of programs such as Medicare and Social Security would cause America to go into a riot because the many people are so dependent on these programs. These programs have good intentions, because not everyone can afford private insurance, or basic healthcare. These people, who have no way of working because of a disability, need a way to survive, and so do elderly people. If the government can Just make these programs more reliable then maybe they would work.
The economy is in bad shape. Today, there is much talk about universal healthcare, which is socialism at its finest. If we adopt this form of healthcare, then we could turn out like Canada, waiting days, weeks, month, or even years for treatment for something simple. And as time without treatment progresses, then those diseases worsens when all we needed in the onset was a simple shot. If we embrace these and other forms of socialism and communism, then this nation would o in a downward spiral to the second Great Depression.
There is a simple solution that some economists are finally figuring out; the Bible has great economic views. In the Bible, money is mentioned 2,350 times, which is more than love, peace, prayer, or even faith. Throughout the Bible, God tells us how to handle money. Here is a good example of how money is important to God. The last book of the Old Testament is Malachite. One of the main points of many in Malachite is how to tithing and not to rob God (Malachite 3:8-15). The people were not tithing and God told them that what they were doing was robbing Him, and they were not going to prosper if they don’t stop.
Then, in the New Testament, Jesus told a parable (Matthew 25:14-30) about the tenure men, won nave Eden given talents (money). I en TLS man was given Twelve talents, the second was given two, and one was given to the last according to their ability. Then it goes on to show how the two men who were given five and two talents double their talent but the one that has buried lost his talent and was cursed. God takes money very seriously, and I think two of the main reasons we are having a hard time n the field of economics is because we have robbed from God and buried our talents.
We have stepped away from God’s plan for money, and now we are suffering from it. If we would Just step back into God’s intentions for money then I’m sure our country would be in better shape economically, not to mention spiritually. America has had a great economy for quite a while. Even with the wrongs and flaws this nation has, it still seems to be successful. God has surely blessed this nation, but we need to get back under His laws and choices, then the economy, as ell as the nation, will be even more prosperous.