Economics For English Class

MORTSDOR'S ENGLISH PAPER ON ECONOMICS

The largest killer in the modern era has been economics. People live and die fighting in support of their economic system. People live or die due to the merit of their system. All economical views can be set in one of three categories: the far left, the far right, and somewhere in the middle. The latter being the only sane view among the three.

The far left of the economical spectrum is defined by government control of the economy. Two such modern systems can be put in this category: Communism, and Socialism. Communism is when the state has full economic control, everyone works for the state, everything is owned by the state, and the state distributes goods. Socialism is when the state controls the manufacturing processes of an economy, and everyone works for and is supported by the state. In Socialism however, individuals can own property. The far left is often popular in poor nations, or in those nations dealing with a failing capitalistic system. No person is supposed to be left behind in a system of the far left, everyone receives a fair share of employment and goods. This idea appeals to those who feel their current system has failed them in this manner.

The problems with the far left are twofold. The first being that this system of state controlled economics is weak, inefficient and not growth oriented. The government sets up boards and companies to run industries, and if these boards or companies fail, they are often just propped up, instead of being cleaned out. Eventually the weakness of one industry or organization affects others in this process. Even in an ideally running communist country growth is not encouraged by the system. If everyone has work and everyone is fed there is no need to change anything. New technologies or processes of work occur very slowly because there is no competitive necessity for them; again encouraging inefficiency. The second problem of the left is corruption. When any one entity is allowed a lot of control over an economy, corruption oft ensues. Individuals who run the state can have personal reasons to keep failing industries alive or make decisions affecting the economy. Corruption just doubles the already existing problem of an inefficient economic system.

The far right of economics is built of the principles of Anarchy and Capitalism. However since Anarchy is so absolutely unrealistic and unpopular, it will not be mentioned again. Capitalism is a pure free market economy. The government will coin a money system, set some economic laws or regulations, and let the market take it from there. The pure free market and unfettered trade of Capitalism can allow it to be the most efficient and growth oriented economic system. In a Capitalistic society the competition of the free market regulates efficiency; it naturally cuts the inefficient companies and rewards the innovative. Capitalism, also does not directly promote