Every economic system have its own advantages anddisadvantages. The first economic system that I wanted to share is thetraditional economic system. I will talk about the advantages then only followby the disadvantages. Traditional economic system, everyone knows that theycontribute towards the production, such as farmers, hunters and also wearer.
For this economic system, there is some little friction between their societymembers because the traditional and customs dictate the distribution of theresources but the society members understand that what are they likely to receive.Besides that, this system has its own disadvantages. They limit population ofgrowth because that they are vulnerable to the market economies and the commandeconomies because this society consume the traditional economies naturalresources depends on the wage war.
The nexteconomic system is command economic system. Command economic system does haveits own advantages also. The resources in this economic system are quickly andeffectively mobilized on a large scale.
And its industrial power is create andmassive projects complete while attaining the imperative social goals. Not onlythese, command economic system is able to transform the society to conform tothe government’s vision for the society or even to the country. However, thiseconomic system have its disadvantages also. This will cause the black marketexplodes 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 tobe offered in the black market. Besides that, sometimes the amount of the goodsthat produced are not balanced.
This is because sometimes one product will bemass produce so that another will not have enough to support the economicneeds. Sometimes the exporting goods will be problematic because they have difficultyfor the controlling entity to determine which products and prices will be mostsuccessful within the market. Furthermore,the advantages for the market economic system are the competition will leads tothe efficiency. This is because the businesses that have fewer costs are morecompetitive and it makes more money. Besides that, some businesses they try todifferentiate themselves so they let a large variety of goods and services availablein the market. However, market economic system has its disadvantages also.
Thehealth and safety cost money so that they love to reduce the profits and thiscause the poor working conditions. The poor working conditions can result dueto the lack of government regulations. Last but notleast, the next economic system is mixed economic system. For this system, ithas the power to creates a balance in regional developments because of the planningcommission of a country will be able to create policies for the improvements ofevery region. And not only that, the government would also try to develop eachsector of the population. The next disadvantages is it creates a quick economicdevelopment. In mixed economic system, the economic development will be quickeris because both the public and the private sectors can operate equally.
So, afterlisting the goods of this economic system, we can now going to talk about itsdisadvantages. Mixed economic system will brings about the fear ofnationalization. Because of the government have the ability to own andnationalize any industry while the private and public sectors coexists.