Types of economic systems

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Overview

Historically, most political systems originated as socio-economic ideologies. There are now many types of economic systems in use at present. Historical experience with those economic movements in power and the strong ties they may have to particular forms of government can cause them to be ultimately considered as forms of government in themselves. Basically put: "All governments need money to work and all money needs to be governed at work or when working, et all!"

The table of economic classifications

Capitalism

A social-economic system in which the means of production (machines, tools, factories, etc.) are under private ownership and their use is for profit.

The term.	Definition.
State capitalism	State capitalism is an economic system in which the state undertakes business and commercial economic activity (i.e. for-profit) and where the means of production are organized and managed as state-owned enterprises (including the processes of capital accumulation, centralized management and wage labor), or where there is otherwise a dominance of corporatized government agencies (agencies organized along business-management practices) or of public companies such as publicly listed corporations in which the state has controlling shares. Marxist literature defines state capitalism as a social system combining capitalism with ownership or control by a state. By this definition, a state capitalist country is one where the government controls the economy and essentially acts like a single huge corporation, extracting the surplus value from the workforce in order to invest it in further production. This designation applies, in the opinion of some Marxists, regardless of the political aims of the state (even if the state is nominally socialist). Many scholars argue that the economy of the Soviet Union and of the Eastern Bloc countries modeled after it, including Maoist China, were state capitalist systems. They also argue that the current economy of China constitutes a form of state capitalism.
Ordoliberalism	Ordoliberalism is the German variant of economic liberalism that emphasizes the need for the state to ensure that the free market produces results close to its theoretical potential. Ordoliberal ideals became the foundation of the creation of the post-World War II German social market economy and its attendant Wirtschaftswunder. The term "ordoliberalism" (German: Ordoliberalismus) was coined in 1950 by Hero Moeller, and refers to the academic journal ORDO. Ordoliberals separate themselves from classical liberals. Notably Walter Eucken, with Franz Böhm, founder of ordoliberalism and the Freiburg School, rejected neoliberalism. Ordoliberals promoted the concept of the social market economy, and this concept promotes a strong role for the state with respect to the market, which is in many ways different from the ideas connected to the term neoliberalism. Oddly the term neoliberalism was originally coined in 1938, at the Colloque Walter Lippmann, by Alexander Rüstow, who is regarded as an ordoliberal today.
Welfare state	A social-economic system in which the state plays a key role in the protection and promotion of the economic and social well-being of its citizens. It is based on the principles of equality of opportunity, equitable distribution of wealth, and public responsibility for those unable to avail themselves of the minimal provisions for a good life.
Monetarism	Monetarism is a school of thought in monetary economics that emphasizes the role of governments in controlling the amount of money in circulation. Monetarist theory asserts that variations in the money supply have major influences on national output in the short run and on price levels over longer periods. Monetarists assert that the objectives of monetary policy are best met by targeting the growth rate of the money supply rather than by engaging in discretionary monetary policy.
Dirigisme	Dirigisme or dirigism (from French diriger 'to direct') is an economic doctrine in which the state plays a strong directive role as opposed to a merely regulatory or non-interventionist role over a capitalist market economy. As an economic doctrine, dirigisme is the opposite to laissez-faire, stressing a positive role for state intervention in curbing productive inefficiencies and market failures. Dirigiste policies often include indicative planning, state-directed investment, and the use of market instruments (taxes and subsidies). The term emerged in the post-war era to describe the economic policies of France which included substantial state-directed investment, the use of indicative economic planning to supplement the market mechanism and the establishment of state enterprises in strategic domestic sectors. It coincided with both the period of substantial economic and demographic growth known as the Trente Glorieuses which followed the war, and the slowdown beginning with the 1973 oil crisis.
Neoliberalism	Neoliberalism or neo-liberalism is the 20th-century resurgence of 19th-century ideas associated with economic liberalism and free-market capitalism. It is generally associated with policies of economic liberalization, including privatization, deregulation, globalization, free trade, austerity and reductions in government spending in order to increase the role of the private sector in the economy and society; "Neoliberalism represents a set of ideas that caught on from the mid to late 1970s, and are famously associated with the economic policies introduced by Margaret Thatcher in the United Kingdom and Ronald Reagan in the United States following their elections in 1979 and 1981. The 'neo' part of neoliberalism indicates that there is something new about it, suggesting that it is an updated version of older ideas about 'liberal economics' which has long argued that markets should be free from intervention by the state. In its simplest version, it reads: markets good, government bad." The term is generally used by those who oppose it. People do not call themselves neoliberal; instead, they tag their enemies with the term, however, the defining features of neoliberalism in both thought and practice have been the subject of substantial scholarly debate. In policy making, neoliberalism was part of a paradigm shift away from the prevailing Keynesian economic consensus that existed prior to the persistent stagflation of the 1970s.
Venture capitalism	Venture capital (VC) is a form of private equity financing that is provided by venture capital firms or funds to startups, early-stage, and emerging companies that have been deemed to have high growth potential or which have demonstrated high growth (in terms of number of employees, annual revenue, scale of operations, etc). Venture capital firms or funds invest in these early-stage companies in exchange for equity, or an ownership stake. Venture capitalists take on the risk of financing risky start-ups in the hopes that some of the firms they support will become successful. Because startups face high uncertainty, VC investments have high rates of failure. The start-ups are usually based on an innovative technology or business model and they are usually from the high technology industries, such as information technology (IT), clean technology or biotechnology. A financing diagram illustrating how start-up companies are typically financed. First, the new firm seeks out "seed capital" and funding from "angel investors" and accelerators. Then, if the firm can survive through the "valley of death"–the period where the firm is trying to develop on a "shoestring" budget–the firm can seek venture capital financing. The typical venture capital investment occurs after an initial "seed funding" round. The first round of institutional venture capital to fund growth is called the Series A round. Venture capitalists provide this financing in the interest of generating a return through an eventual "exit" event, such as the company selling shares to the public for the first time in an initial public offering (IPO), or disposal of shares happening via a merger, via a sale to another entity such as a financial buyer in the private equity secondary market or via a sale to a trading company such as a competitor.

Communism

A social-economic system in which means of production are commonly owned (either by the people directly, through the commune or by communist society), and production is undertaken for use, rather than for profit. Communist society is thus stateless, classless, moneyless, rankless and democratic.

The term.	Definition.
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Traditionalist

The term.	Definition.
Feudalism	A social-economic system of land ownership and duties. Under feudalism, all the land in a kingdom was the king's. However, the king would give some of the land to the lords or nobles who fought for him. These presents of land were called manors. Then the nobles gave some of their land to vassals. The vassals then had to do duties for the nobles. The lands of vassals were called fiefs.
Distributism	A social-economic system in which widespread property ownership as fundamental right; the means of production are spread as widely as possible rather than being centralized under the control of the state (state socialism), a few individuals (plutocracy), or corporations (corporatocracy). Distributism fundamentally opposes socialism and capitalism, which distributists view as equally flawed and exploitative. In contrast, distributism seeks to subordinate economic activity to human life as a whole, to our spiritual life, our intellectual life, our family life".
Corporatism	Corporatism is a political ideology which advocates the organization of society by corporate groups, such as agricultural, labour, military, scientific, or guild associations, on the basis of their common interests.[1][2] The term is derived from the Latin corpus, or "human body". The hypothesis that society will reach a peak of harmonious functioning when each of its divisions efficiently performs its designated function, such as a body's organs individually contributing its general health and functionality, lies at the center of corporatist theory

Socialism

A social-economic system in which workers, democratically and socially own the means of production and the economic framework may be decentralized, distributed or centralized planned or self-managed in autonomous economic units. Public services would be commonly, collectively, or state owned, such as healthcare and education.

The term.	Definition.
Syndicalism.	Syndicalism is a current in the labor movement to establish local, worker-based organizations and advance the demands and rights of workers through strikes. Most active in the early 20th century, syndicalism was predominant in the revolutionary left in the decade which preceded the outbreak of World War I because orthodox Marxism was mostly reformist at that time, according to the Marxist historian Eric Hobsbawm. A number of syndicalist organizations were and still are to this day linked in the International Workers' Association, but some of its member organizations left for the International Confederation of Labor, formed in 2018. The term syndicalism has French origins. In French, a syndicat is a trade union, usually a local union. Revolutionary syndicalism, or more commonly syndicalism with the revolutionary implied, was then adapted to a number of languages by unionists following the French model. It's basic form coveres: A preference for federalism over centralism, opposition to political parties, seeing the general strike as the supreme revolutionary weapon, favoring the replacement of the state by "a federal, economic organization of society" and seeing trades unions as the basic building blocks of a post-capitalist society.
Welfare state	A social-economic system in which the state plays a key role in the protection and promotion of the economic and social well-being of its citizens. It is based on the principles of equality of opportunity, equitable distribution of wealth, and public responsibility for those unable to avail themselves of the minimal provisions for a good life.
Dirigisme	Dirigisme or dirigism (from French diriger 'to direct') is an economic doctrine in which the state plays a strong directive role as opposed to a merely regulatory or non-interventionist role over a capitalist market economy. As an economic doctrine, dirigisme is the opposite to laissez-faire, stressing a positive role for state intervention in curbing productive inefficiencies and market failures. Dirigiste policies often include indicative planning, state-directed investment, and the use of market instruments (taxes and subsidies). The term emerged in the post-war era to describe the economic policies of France which included substantial state-directed investment, the use of indicative economic planning to supplement the market mechanism and the establishment of state enterprises in strategic domestic sectors. It coincided with both the period of substantial economic and demographic growth known as the Trente Glorieuses which followed the war, and the slowdown beginning with the 1973 oil crisis.
Market socialism	Market socialism is a type of economic system involving the public, cooperative, or social ownership of the means of production in the framework of a market economy. Market socialism differs from non-market socialism in that the market mechanism is utilized for the allocation of capital goods and the means of production. Depending on the specific model of market socialism, profits generated by socially owned firms (i.e., net revenue not reinvested into expanding the firm) may variously be used to directly remunerate employees, accrue to society at large as the source of public finance, or be distributed amongst the population in a social dividend. Market socialism is distinguished from the concept of the mixed economy because models of market socialism are complete and self-regulating systems, unlike the mixed economy. Market socialism also contrasts with social democratic policies implemented within capitalist market economies. While social democracy aims to achieve greater economic stability and equality through policy measures such as taxes, subsidies and social welfare programs, market socialism aims to achieve similar goals through changing patterns of enterprise ownership and management.
Mutualism	Mutualism is an anarchist school of thought and economic theory that advocates a socialist society based on free markets and usufructs, i.e. occupation and use property norms. One implementation of this system involves the establishment of a mutual-credit bank that would lend to producers at a minimal interest rate, just high enough to cover administration. Mutualism is based on a version of the labor theory of value which it uses as its basis for determining economic value. According to mutualist theory, when a worker sells the product of their labor, they ought to receive money, goods, or services in exchange that are equal in economic value, embodying "the amount of labor necessary to produce an article of exactly similar and equal utility".

Statism

A social-economic system that concentrates power in the state at the expense of individual freedom. Among other variants, the term subsumes theocracy, absolute monarchy, Nazism, fascism, authoritarian socialism, and also plain, unadorned dictatorship. Such variants differ on matters of form, tactics and ideology.

The term.	Definition.
Stateism	A social-economic system that concentrates power in the state at the expense of individual freedom. Among other variants, the term subsumes theocracy, absolute monarchy, Nazism, fascism, authoritarian socialism, and also plain, unadorned dictatorship. Such variants differ on matters of form, tactics and ideology.

Religious

The creation of an economy braced on t he application of holy values and morality.

The term.	Definition.
Islamic inclined ecanomic business morality	Morality in Islam encompasses the concept of righteousness, good character, and the body of moral qualities and virtues prescribed in Islamic religious texts. The principle and fundamental purpose of Islamic morality is love: love for God and love for God's creatures. The religious conception is that mankind will behave morally and treat each other in the best possible manner to please God. Economics is one of the aspects it covers. Islamic economics (Arabic: الاقتصاد الإسلامي‎) is a term used to refer to Islamic commercial jurisprudence (Arabic: فقه المعاملات‎, fiqh al-mu'āmalāt), and also to an ideology of economics based on the teachings of Islam that takes a middle ground between the systems of Marxism and capitalism, mostly similar to the labour theory of value, which is "labour-based exchange and exchange-based labour".
Christian finance	Christian finance is a kind of ethical finance following Christian ethics. Christian finance is characterized by the existence of three dimensions: personal (actors), operational (operations), and dogmatic (principles). Christian ethics, also called moral theology, is a virtue ethic, which focuses on building moral character, and a deontological ethic called Divine command theory, which assesses choices. It also has elements of Natural law ethics built on the belief that the very nature of humans as created in the image of God, as creatures capable of cooperation, rationality, discernment, and so on, informs how life should be lived, and that knowledge of sin does not require the special revelation of Scripture. Additional aspects of Christian ethics, represented by modern movements such as the Social gospel and liberation theology, can be combined into a fourth category called prophetic ethics.

Georgisum

Georgism, also called in modern times geoism and known historically as the single tax movement, is an economic ideology holding that while people should own the value they produce themselves, the economic rent derived from land, including from all natural resources, the commons, and urban locations should belong equally to all members of society. Developed from the writings of American economist and social reformer Henry George, the Georgist paradigm seeks solutions to social and ecological problems, based on principles of land rights and public finance which attempt to integrate economic efficiency with social justice.

The term.

Definition.

Georgism

Georgism, also called in modern times geoism and known historically as the single tax movement, is an economic ideology holding that while people should own the value they produce themselves, the economic rent derived from land, including from all natural resources, the commons, and urban locations should belong equally to all members of society. Developed from the writings of American economist and social reformer Henry George, the Georgist paradigm seeks solutions to social and ecological problems, based on principles of land rights and public finance which attempt to integrate economic efficiency with social justice.

Social credit

Social credit is an interdisciplinary and distributive philosophy developed by C. H. Douglas. It encompasses economics, political science, history, and accounting. Its policies are designed, according to Douglas, to disperse economic and political power to individuals. The economic theory that consumer purchasing power should be increased either by subsidizing producers so that they can lower prices or by distributing the profits of industry to consumers. Douglas collected data from more than a hundred large British businesses and found that in nearly every case, except that of companies becoming bankrupt, the sums paid out in salaries, wages and dividends were always less than the total costs of goods and services produced each week: consumers did not have enough income to buy back what they had made. Troubled by the seeming difference between the way money flowed and the objectives of industry ("delivery of goods and services", in his opinion), Douglas decided to apply engineering methods to the economic system.

The term.

Definition.

Social Credit

Social credit is an interdisciplinary and distributive philosophy developed by C. H. Douglas. It encompasses economics, political science, history, and accounting. Its policies are designed, according to Douglas, to disperse economic and political power to individuals. The economic theory that consumer purchasing power should be increased either by subsidizing producers so that they can lower prices or by distributing the profits of industry to consumers. Douglas collected data from more than a hundred large British businesses and found that in nearly every case, except that of companies becoming bankrupt, the sums paid out in salaries, wages and dividends were always less than the total costs of goods and services produced each week: consumers did not have enough income to buy back what they had made. Troubled by the seeming difference between the way money flowed and the objectives of industry ("delivery of goods and services", in his opinion), Douglas decided to apply engineering methods to the economic system.

• Marxist-Lennist
• Stalinist-Maouist
• Associative
• Capitalist
  • Corporate
  • Democratic
  • Laissez-faire
  • Mercantilist
  • Neomercantilist
  • Protectionist
  • Social market
• Democratic
• Fascist
• Feminist
• Green
• Socialist
  • Participatory
  • Socialist market
  • Libertarian socialism
• Communist
  • Anarchist
  • Communalist
  • Socialist-oriented market

1. Municipal socialism
2. Liberal free trade capitalism

The term.	Definition.

Also see

1. Stagflation
2. Thatcherism
3. Demand lead economics
4. Supply-side economics
5. Trickle down economics
6. Bottom up ecanomic
7. Top down economics
8. Reganomics

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