Economic Roles and Historical Types We have constructed an economy based on capital structure, interpersonal exchange, and money, and have explored states of rest, which are the fixed points of attraction for human activity. Now we're ready

Lecture:

Main economic issues

What to produce? This means deciding what, in what quantity and of what quality economic goods (goods and services) need to be created.

How to produce? This means deciding what resources and technologies will be used in the production of certain economic goods.

For whom to produce? This means determining for which categories of people (market segment) the goods produced will be intended, for example, toys for children, cosmetics for women.

Economic system is a set of principles and rules of economic relations that arise in the process of production, distribution, exchange and consumption of goods.

Scientists distinguish traditional, planned (command), market and mixed economic systems. Let's consider their characteristic features.

Traditional economic system

Signs:

• resolving issues of what, how and for whom to produce is based on traditions (continuity);
• the basis of the economy is agriculture;
• communal form of ownership;
• universal manual labor and primitive production technologies that hinder the growth of labor productivity;
• subsistence farming, production aimed at satisfying one’s own needs and not for sale;
• low trade turnover, correspondingly low level of commodity-money relations;
• closed society, the existence of caste or class divisions that do not allow people to move from one social group to another, as a result of which socio-economic progress is hampered.

The traditional economic system has its advantages and disadvantages. The advantages are continuity, ease of organization of production, and minor environmental pollution. The disadvantages are low incomes, shortages of consumer goods, and limited economic growth.

A planned (command) economic system is one of the signs of a totalitarian political regime. This type dominated during the Soviet era, but also functions in modern states, for example, North Korea and Cuba.

Signs:

• the decision of the main economic issues belongs to a centralized state body, which carries out directive planning of production;
• the basis of the economy is agriculture and foreign trade;
• the means of production are owned by the state, and only property intended for running a household can be privately owned;
• the emergence of a social division of labor;
• administrative regulation of prices;
• market monopolization.

Market economic system

A market economy presupposes freedom of entrepreneurial activity, which is guaranteed by the state. The basis of the relationship between producers and consumers is individual interest and personal benefit.

Signs:

• the decision on what, how and for whom to produce belongs to the owner, producer, consumer;
• the basis of the economy is the service sector;
• a variety of forms of ownership is recognized, but private ownership predominates;
• deepening the social division of labor;
• trade relations are developing widely;
• pricing is free and regulated by market laws;
• competition;
• Scientific and technological progress achievements are being widely introduced into production.

The main advantage of a market economy is competition, which is necessary for producers to strive to create quality products and for consumers to have a wide choice of a particular product or service (assortment). Another advantage is the interest of producers in using resources efficiently and meeting the maximum needs of people at minimum costs. This system also has disadvantages. This is income inequality, a significant social gap between the poor and the rich, unemployment, and periodic economic crises. The problem of negative external (side) effects is acute. For example, the operation of a pulp and paper mill causes water pollution (release of waste into water); Increased use of cars by people leads to air pollution. The state is forced to intervene in solving such problems, eliminating market imperfections.

This type of economic system combines the features of command and market systems with the predominance of the latter. Therefore, one of the important features of a mixed economy is multi-sector, when the role of both the state and private individuals is significant in production. But this system may also contain features of a traditional economy. For example, perfume production in France is traditional. The role of the state in a mixed economy is great and consists in:

• preventing a monopoly on the production of economic goods (with the exception of strategically important goods, for example, military equipment and weapons, space equipment);
• preventing shortages of goods and services;
• price stabilization;
• ensuring employment of the able-bodied population and providing assistance to disabled citizens (for example, disabled people, pensioners);
• production of public goods (for example, health care and education);
• protection from unscrupulous market participants;
• in the fight against negative externalities of production.

To better understand how the modern How humanity has learned to find answers to its main questions, it is necessary to analyze the thousand-year history of the development of economic systems of civilization.

Depending on the method of solving the main economic problems and the type of ownership of economic resources, four main types of economic systems: 1) traditional; 2) market (capitalism);3) command (socialism); 4) mixed.

Of these, the most ancient is the traditional economic system.

Traditional economic system - a way of organizing economic life in which land and capital are held in common by the tribe, and limited resources are distributed according to long-standing traditions.

As for the ownership of economic resources, in the traditional system it was most often collective, that is, hunting grounds, arable lands and meadows belonged to the tribe or community.

Over time, the basic elements of the traditional economic system ceased to suit humanity. Life has shown that factors of production are used more efficiently if they are owned by individuals or families rather than collectively owned. In none of the richest countries in the world is collective property the basis of social life. But in many of the world's poorest countries, remnants of such property remain.

For example,The rapid development of Russian agriculture occurred only at the beginning of the 20th century, when the reforms of P. A. Stolypin destroyed collective (community) land ownership, which was replaced by land ownership by individual families. Then the communists who came to power in 1917 actually restored communal land ownership, declaring the land “public property.”

Having built its agriculture on collective property, the USSR was unable to do so for 70 years of the 20th century. achieve food abundance. Moreover, by the beginning of the 80s, the food situation became so bad that the CPSU was forced to adopt a special “Food Program”, which, however, was also not implemented, although huge amounts of money were spent on the development of the agricultural sector.

On the contrary, the agriculture of European countries, the USA and Canada, based on private ownership of land and capital, succeeded in solving the problem of creating food abundance. And so successfully that farmers in these countries were able to export a considerable share of their products to other regions of the world.

Practice has shown that markets and firms are better at solving the problem of distributing limited resources and increasing the production of vital goods than councils of elders - the bodies that made fundamental economic decisions in the traditional system.

This is why the traditional economic system has, over time, ceased to be the basis for organizing people's lives in most countries of the world. Its elements faded into the background and were preserved only in fragments in the form of various customs and traditions of secondary importance. In most countries of the world, other ways of organizing economic cooperation between people play a leading role.

The traditional one has replaced market system(capitalism) . The basis of this system is:

1) the right of private property;

2) private economic initiative;

3) market organization of distribution of limited resources of society.

Private property rights There is the right of an individual, recognized and protected by law, to own, use and dispose of a specified type and amount of limited resources (for example, a piece of land, a coal mine or a factory), which means and receive income from it. It was the opportunity to own this type of productive resources, such as capital, and to receive income on this basis that determined the second, often used name for this economic system - capitalism.

Private property - recognized by society the right of individual citizens and their associations to own, use and dispose of a certain volume (part) of any type of economic resources.

For your information. At first, the right of private property was protected only by force of arms, and only kings and feudal lords were the owners. But then, having gone through a long path of wars and revolutions, humanity created a civilization in which every citizen could become a private owner if his income allowed him to purchase property.

The right of private property allows owners of economic resources to independently make decisions about how to use them (as long as this does not harm the interests of society). At the same time, this almost unlimited freedom of disposal of economic resources has a downside: owners of private property bear full economic responsibility for the options they choose for its use.

Private economic initiative Each owner of productive resources has the right to independently decide how and to what extent to use them to generate income. At the same time, everyone’s well-being is determined by how successfully he can sell on the market the resource he owns: his labor force, skills, products of his own hands, his own plot of land, the products of his factory, or the ability to organize commercial operations.

And finally, actually markets- organized activity for the exchange of goods in a certain way.

It is the markets:

1) determine the degree of success of a particular economic initiative;

2) form the amount of income that property brings to its owners;

3) dictate the proportions of distribution of limited resources between alternative areas of their use.

The virtue of the market mechanism is that it forces each seller to think about the interests of buyers in order to achieve benefits for himself. If he does not do this, then his product may turn out to be unnecessary or too expensive and instead of benefits he will receive only losses. But the buyer is also forced to take into account the interests of the seller - he can receive the goods only by paying the prevailing market price for it.

Market system(capitalism) - a way of organizing economic life in which capital and land are owned by individuals and scarce resources are allocated through markets.

Markets based on competition have become the most successful way known to mankind for distributing limited productive resources and the benefits created with their help.

Of course, and the market system has its disadvantages. In particular, it generates huge differences in income and wealth levels when some bask in luxury, while others vegetate in poverty.

Such differences in income have long encouraged people to interpret capitalism as an “unfair” economic system and to dream of a better arrangement for their lives. These dreams led to the emergence of XIX century social movement called Marxism in honor of its main ideologist - a German journalist and economist Karl Marx. He and his followers argued that the market system had exhausted the possibilities of its development and became a brake on the further growth of human well-being. Therefore, it was proposed to replace it with a new economic system - a command system, or socialism (from the Latin societas - “society”).

Command economic system (socialism) - a way of organizing economic life in which capital and land are owned by the state, and the distribution of limited resources is carried out according to the instructions of the central government and in accordance with plans.

The birth of the command economic system was a consequence of a series of socialist revolutions , whose ideological banner was Marxism. The specific model of the command system was developed by the leaders of the Russian Communist Party V.I. Lenin and I.V. Stalin.

According to Marxist theory humanity could dramatically accelerate its path to increased well-being and eliminate differences in the individual well-being of citizens by eliminating private property, eliminating competition and conducting all economic activities of the country on the basis of a single universally binding (directive) plan, which is developed by the state leadership on a scientific basis. The roots of this theory go back to the Middle Ages, to the so-called social utopias, but its practical implementation occurred precisely in the 20th century, when the socialist camp arose.

If all resources (factors of production) are declared to be the property of the whole people, but in reality they are completely controlled by state and party officials, then this entails very dangerous economic consequences. The incomes of people and firms no longer depend on how well they use limited resources how much the result of their work is really needed by society. Other criteria become more important:

a) for enterprises - the degree of fulfillment and overfulfillment of planned targets for the production of goods. It was for this that enterprise managers were awarded orders and appointed ministers. It does not matter that these goods could be completely uninteresting to buyers who, if they had freedom of choice, would prefer other goods;

b) for people - the nature of the relationship with the authorities, who distributed the most scarce goods (cars, apartments, furniture, trips abroad, etc.), or holding a position that opens access to “closed distributors”, where such scarce goods can be bought free.

As a result, in command system countries:

1) even the simplest goods people needed turned out to be “scarce.” “Parachuters” became a common sight in the largest cities, that is, residents of small towns and villages who came with large backpacks to buy food, since there was simply nothing in their grocery stores;

2) a lot of enterprises constantly suffered losses, and there was even such an amazing category of them as planned unprofitable enterprises. At the same time, employees of such enterprises still received regular wages and bonuses;

3) the greatest success for citizens and enterprises was to “get” some imported goods or equipment. People started lining up for Yugoslav women's boots in the evening.

As a result, the end of the 20th century. became an era of deep disappointment in the capabilities of the planned-command system, and the former socialist countries began the difficult task of reviving private property and the market system.

When talking about a planned-command or market economic system, it should be remembered that in their pure form they can only be found on the pages of scientific works. Real economic life, on the contrary, is always a mixture of elements of different economic systems.

The modern economic system of most developed countries of the world is of a mixed nature. Many national and regional economic problems are solved here by the state.

As a rule, today the state participates in the economic life of society for two reasons:

1) due to their specificity, some needs of society (maintaining an army, developing laws, organizing street traffic, fighting epidemics, etc.) can be satisfied better than is possible on the basis of market mechanisms alone;

2) it can mitigate the negative consequences of the activities of market mechanisms (too large differences in the wealth of citizens, damage to the environment from the activities of commercial firms, etc.).

Therefore, for the civilization of the late 20th century. The mixed economic system became predominant.

Mixed economic system - a way of organizing economic life in which land and capital are privately owned, and the distribution of limited resources is carried out both by markets and with significant state participation.

In such an economic system the basis is private ownership of economic resources, although in some countries(France, Germany, Great Britain, etc.) there is a fairly large public sector. It includes enterprises whose capital is fully or partially owned by the state (for example, the German airline Lufthansa), but which: a) do not receive plans from the state; b) work according to market laws; c) are forced to compete on equal terms with private firms.

In these countries major economic issues are largely decided by markets. They also distribute the predominant part of economic resources. At the same time some resources are centralized and distributed by the state using command mechanisms in order to compensate for some weaknesses of market mechanisms (Fig. 1).

Rice. 1. The main elements of a mixed economic system (I - the scope of market mechanisms, II - the scope of command mechanisms, i.e. control by the state)

In Fig. Figure 2 shows a scale that roughly represents what economic systems various states belong to today.

Rice. 2. Types of economic systems: 1 - USA; 2 - Japan; 3 - India; 4 - Sweden, England; 5 - Cuba, North Korea; 6 - some countries of Latin America and Africa; 7— Russia

Here, the arrangement of numbers symbolizes the degree of proximity of the economic systems of various countries to one type or another. The pure market system is most fully implemented in some countriesLatin America and Africa. Factors of production there are already predominantly privately owned, and government intervention in resolving economic issues is minimal.

In countries like USA and Japan, private ownership of factors of production dominates, but the role of the state in economic life is so great that we can talk about a mixed economic system. At the same time, the Japanese economy has retained more elements of the traditional economic system than the United States. This is why the number 2 (Japanese economy) is slightly closer to the top of the triangle, symbolizing the traditional system, than the number 1 (US economy).

In economies Sweden and Great Britain the role of the state in the distribution of limited resources is even greater than in the USA and Japan, and therefore the number 4 symbolizing them is to the left of the numbers 1 and 2.

In its most complete form, the command system has now been preserved in Cuba and North Korea. Here private property is eliminated, and the state distributes all limited resources.

The existence of significant elements of the traditional economic system on the farm India and others like her countries of Asia and Africa(although the market system prevails here too) determines the placement of the corresponding number 3.

Location Russia(number 7) is determined by the fact that:

1) the foundations of the command system in our country have already been destroyed, but the role of the state in the economy is still very large;

2) the mechanisms of the market system are still being formed (and are still less developed than even in India);

3) factors of production have not yet completely passed into private ownership, and such an important factor of production as land is actually in the collective ownership of members of former collective and state farms, which were only formally transformed into joint-stock companies.

What kind of economic system is Russia's future path towards?

In order for the economy to develop, you need to know what technologies to use in production, what to produce and in what quantities. Producers can choose their economic strategy independently, but nationwide it is adopted by the state. Some entrepreneurs are guided only by the desire to gain personal benefit and profit. The state chooses an economic development strategy depending on the needs of society in solving social problems and tasks.

What is an economic system, its main types

Each sphere of society has its own rules and requirements to which people obey. And economics is no exception, since the process of production and distribution of economic goods is a complex process that requires special government control. Economic system- this is a form of organization of economic life in the country, the creation of special conditions and rules for the economic activities of people.

Today it is customary to distinguish 4 types of economic systems:

• Traditional;
• Team;
• Market;
• Mixed.

They differ from each other in important characteristics:

• The presence or absence of state control over the quality of products;
• The presence of an antimonopoly policy (control over the activities of monopolies , protection of free competition in the market);
• The degree of influence of the state on the economy;
• The predominance of private, collective or state property in society;
• Methods of government influence on the economy;
• Providing conditions for the development of the non-productive sphere: culture, education, healthcare;
• The degree of state involvement in international trade relations.

The types of economic system in Russia have changed over time. Until the beginning of the 18th century, a traditional economic system dominated in Russia. With the beginning of the reign of Peter I, a command system of management began to take shape in the country. The transition to a market system became possible only from the end of 1980 to the beginning of 1990, with the collapse of the Soviet Union. Today Russia has a mixed economic system, which involves a combination of market and command.

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To understand what we are talking about, let’s understand the definition of each economic system and consider examples.

Traditional economic system

The traditional economic system in the past was characteristic of all states of the Ancient World, the Middle Ages and some countries of the New Age. In the modern world, the traditional economic system is found only in the least developed countries, with low living standards and technology development (countries of Africa, Latin America, Asia).

Distinctive features of the traditional economy:

• Predominance of subsistence farming. All economic activities are simplified, aimed not at making a profit, but at satisfying one’s own needs. That is, the producer himself consumes the goods he produced;
• Economic activity is based on traditions. The way in which material goods are produced is determined by traditions, customs passed on from generation to generation, from father to son;
• A person’s profession and his place in society are determined by origin (for example, in Ancient India, only those born in the Kshatriya caste could take a place in government, representatives of the Vaishya caste were called upon to engage in trade, and Shudras were called upon to engage in trade).
• Poor technology development;
• The predominance of agricultural and handicraft production, lack of industrial development;
• Low standard of living for the main part of society (with the exception of the elite, in whose hands the power is).

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A striking example of a traditional economic system is the feudal states of Europe. Society in such states was divided into feudal lords and vassals (dominant and subordinate class). Each feudal lord's household established the production of food, clothing, and basic necessities for their own needs. Trade was poorly developed, in some regions it was completely absent.

Positive and negative features of the traditional economic system:

1. Stability, maintaining constancy in the economic life of society;
2. Poor technology development;
3. Low level of education;
4. The goods produced are not enough to satisfy the needs of all members of society;
5. Dependence on natural resources;
6. Actual lack of rights for the lower strata of society.

The main distinguishing feature of the traditional economic system is low labor productivity. That is, material goods are produced very slowly; it takes a lot of time to create any product.

Command economic system

Historical types of economic systems also include command economies; they existed in the USSR and other countries that adhered to socialism . A command economy is also called a planned economy, since the production of material and spiritual goods in such a country took place according to state plans. The state regulated what to produce, in what volumes, and completely controlled the quality of the product and its price on the market.

Signs of a command economic system:

• Full control of economic activities by the state;
• Most industrial enterprises are owned by the state;
• The state sets fixed prices for goods and wages for workers;
• Entrepreneurial activity is not developed or is absent altogether.

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Disadvantages of a command economic system:

• Weak motivation of workers in the production of goods (they know that they still will not be able to achieve an increase in pay for their labor);
• The state does not have time to adjust its plans to changes in demand and supply for goods, so shortages (shortage of goods) often arise;
• Uniformity of manufactured goods;
• Lack of competition in the market.

Advantages of a planned economy:

• Low unemployment rate (most citizens work in their specialty);
• The command economic system is characterized by an equal distribution of material goods; there is practically no social inequality in society; there are no poor and rich.

In modern times, there are no states with a planned economy; North Korea and Cuba were the last to abandon it.

Market economic system

The traditional and planned economy was replaced by a market economy. Signs of a market economic system:

• Minimal state control over the economy;
• Most industrial enterprises are privately owned (owned by certain people, not the state);
• The manufacturer himself decides what to produce and in what quantity;
• The volume of production is regulated by supply and demand;
• Freedom of business activity;
• Prices for most goods are set by the manufacturer himself, without government intervention.

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Advantages of a market economic system:

1. Thanks to competition among producers, the consumer has a large choice in the goods provided to him;
2. The struggle for the client gives rise to the invention of new technologies for the production of cheaper, higher quality or unique goods;
3. Entrepreneurs and workers are interested in the results of their work.

The main disadvantage of a market economic system is monopolies- large manufacturing enterprises, corporations that have established dominance in any sector of the economy. Monopolies arise due to the combination of several industries, the absorption of the enterprises of its competitors by one monopolist.

This is interesting! In the 17th century in England, due to the monopoly of King Charles I on the pepper trade, the spice began to be worth its weight in gold, in the literal sense of the word. The rich man was no longer called a bag of money, but a bag of pepper.

Monopolies charge inflated prices for goods, knowing that there are no competitors who can offer a similar product at a lower cost. Because of monopolies, both entrepreneurs suffer (they are unable to cope with a large competitor who has subjugated the entire market) and consumers (they are forced to purchase too expensive goods).

In addition, the market type of economic system is built on maximizing profit. But there are areas in the country that generate virtually no income, but are necessary for the population. Only the state can be interested in repairing roads, developing education, culture, and healthcare. It is also interested in protecting the environment from industrial waste and pollution.

Because of this, most states with a market economic system have moved to a mixed economy.

Mixed economic system

A mixed economy is a type of economic system that combines the advantages of a market and planned economy. It combines state and private ownership, economic development in it is regulated by supply and demand for goods. The state influences the economy through laws and the tax system. Part taxes the state spends on road repairs, construction of new schools, hospitals, development of culture and creativity, support of vulnerable segments of the population (unemployed, disabled).

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Signs of a mixed economic system:

• The state restrains the growth of monopolies and supports competition;
• In the country, some enterprises belong to the state, some are in the hands of private owners;
• The state controls the development of the economy through laws, regulations, and a system of prohibitions;
• The state is engaged in environmental protection, preservation of cultural and historical heritage;
• The state stimulates the development of the sectors of the economy it needs (industry, agriculture, trade) through financial support of certain enterprises.

A mixed economic system is typical for most developed countries of the world: Germany, the United States of America, Japan, France, Great Britain and others.

The role of the state in the modern economy

Currently, the main task of the state in the economic sphere is to monitor business activities, pay taxes, and control the release of money. In addition, the economic functions of the state include:

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Dictionary

1. Socialism is a social system based on the idea of ​​social justice, equality, and freedom.

2. Taxes are mandatory fees in favor of the state to ensure the political, social and cultural spheres of society.

3. The right of ownership is the right that secures the ownership of a material good to its owner - the owner.

An economic system is a set of interrelated elements that form an overall economic structure. It is customary to distinguish 4 types of economic structures: traditional economy, command economy, market economy and mixed economy.

Traditional economics

Traditional economics based on natural production. As a rule, it has a strong agricultural bias. The traditional economy is characterized by clanism, legalized division into classes, castes, and closeness from the outside world. In a traditional economy, traditions and unspoken laws are strong. Personal development in the traditional economy is severely limited and the transition from one social group to another, higher in the social pyramid, is practically impossible. Traditional economics often uses exchange in kind instead of money.

The development of technology in such a society occurs very slowly. Now there are practically no countries left that could be classified as countries with traditional economies. Although in some countries it is possible to identify isolated communities leading a traditional way of life, for example, tribes in Africa, leading a way of life that differs little from what their distant ancestors led. However, in any modern society, remnants of the traditions of their ancestors are still preserved. For example, this may apply to the celebration of religious holidays such as Christmas. In addition, there is still a division of professions into male and female. All these customs in one way or another affect the economy: remember Christmas sales and the resulting sharp increase in demand.

Command economy

Command economy. A command or planned economy is characterized by the fact that it centrally decides what, how, for whom and when to produce. The demand for goods and services is established based on statistical data and plans of the country's leadership. A command economy is characterized by high concentration of production and monopolism. Private ownership of factors of production is practically excluded or there are significant obstacles to the development of private business.

A crisis of overproduction in a planned economy is unlikely. Shortages of quality goods and services are becoming more likely. Indeed, why build two stores next to each other when you can get by with one, or why develop more advanced equipment when you can produce low-quality equipment - there is still no alternative. Among the positive aspects of a planned economy, it is worth highlighting the saving of resources, especially human resources. In addition, a planned economy is characterized by a quick reaction to unexpected threats - both economic and military (remember how quickly the Soviet Union was able to quickly evacuate its factories to the east of the country; this is unlikely to be repeated in a market economy).

Market economy

Market economy. A market economic system, in contrast to a command one, is based on the predominance of private property and free pricing based on supply and demand. The state does not play a significant role in the economy; its role is limited to regulating the situation in the economy through laws. The state only makes sure that these laws are observed, and any distortions in the economy are quickly corrected by the “invisible hand of the market.”

For a long time, economists believed that government intervention in the economy was harmful and argued that the market could regulate itself without external intervention. however, the Great Depression refuted this claim. The fact is that it would be possible to get out of the crisis only if there was a demand for goods and services. And since no group of economic entities could generate this demand, demand could only arise from the state. That is why, during crises, states begin to rearm their armies - thereby they create primary demand, which revives the entire economy and allows it to break out of the vicious circle.

You can learn more about the rules of a market economy from special webinars from forex broker Gerchik & Co.

Mixed economy

Mixed economy. Now there are practically no countries left with only a market, command, or traditional economy. Any modern economy has elements of both a market and a planned economy and, of course, in every country there are remnants of a traditional economy.

The most important industries contain elements of a planned economy, for example, the production of nuclear weapons - who would trust a private company to produce such a terrible weapon? The consumer sector is almost entirely owned by private companies, because they are better able to determine the demand for their products, as well as see new trends in time. But some goods can only be produced in a traditional economy - folk costumes, some food products, etc., therefore, elements of the traditional economy are preserved.