Every economic system have its own advantages and
disadvantages. The first economic system that I wanted to share is the
traditional economic system. I will talk about the advantages then only follow
by the disadvantages. Traditional economic system, everyone knows that they
contribute towards the production, such as farmers, hunters and also wearer.
For this economic system, there is some little friction between their society
members because the traditional and customs dictate the distribution of the
resources but the society members understand that what are they likely to receive.
Besides that, this system has its own disadvantages. They limit population of
growth because that they are vulnerable to the market economies and the command
economies because this society consume the traditional economies natural
resources depends on the wage war.
economic system is command economic system. Command economic system does have
its own advantages also. The resources in this economic system are quickly and
effectively mobilized on a large scale. And its industrial power is create and
massive projects complete while attaining the imperative social goals. Not only
these, command economic system is able to transform the society to conform to
the government’s vision for the society or even to the country. However, this
economic system have its disadvantages also. This will cause the black market
explodes in a command economic system. And it due to the government restrictions,
goods and the services are not offered in this economy so that they started to
be offered in the black market. Besides that, sometimes the amount of the goods
that produced are not balanced. This is because sometimes one product will be
mass produce so that another will not have enough to support the economic
needs. Sometimes the exporting goods will be problematic because they have difficulty
for the controlling entity to determine which products and prices will be most
successful within the market.
the advantages for the market economic system are the competition will leads to
the efficiency. This is because the businesses that have fewer costs are more
competitive and it makes more money. Besides that, some businesses they try to
differentiate themselves so they let a large variety of goods and services available
in the market. However, market economic system has its disadvantages also. The
health and safety cost money so that they love to reduce the profits and this
cause the poor working conditions. The poor working conditions can result due
to the lack of government regulations.
Last but not
least, the next economic system is mixed economic system. For this system, it
has the power to creates a balance in regional developments because of the planning
commission of a country will be able to create policies for the improvements of
every region. And not only that, the government would also try to develop each
sector of the population. The next disadvantages is it creates a quick economic
development. In mixed economic system, the economic development will be quicker
is because both the public and the private sectors can operate equally. So, after
listing the goods of this economic system, we can now going to talk about its
disadvantages. Mixed economic system will brings about the fear of
nationalization. Because of the government have the ability to own and
nationalize any industry while the private and public sectors coexists.