Economic systems and values

Free Market Economy (Liberal/Right)

Values: Self-interest, competition, economic freedom, private property.

What is produced? → Producers respond to consumer demand (supply & demand).

How produced? → Companies decide production methods to maximize profit.

To whom distributed? → Whoever can pay; private ownership protected by law.

Decision-making → Individuals/businesses decide; minimal government interference.

Equality of Opportunity

Remove discrimination or barriers to economic success.

Example: Anyone can pursue a career path if qualified; government does not guarantee income equality.

Centrally Planned (Command) Economy (Collectivist/Left)

What is produced? → Government decides societal needs.

How produced? → Government/public owns factories/resources; sets quotas.

To whom distributed? → Government distributes according to need.

Decision-making → Central planners decide; individuals have little choice.

Egalitarianism (Left)

Collectivist value: Treat all people equally in political, social, and economic rights.

Example: Cuba after 1959 communist revolution; emphasis on equality even if all are poor.

Mixed Economy (Welfare Capitalism)

Combination of free market and government intervention.

Production & Distribution → Supply & demand guides production; government provides goods/services when necessary.

Decision-making → Shared between government and private companies.

Equitable Distribution of Income → Not absolute equality, but reduces extreme inequality.

Example thinker: John Maynard Keynes.

Free Market Economy (Liberal/Right)

Values

Equality of Opportunity

Remove discrimination or barriers to economic success. Anyone can pursue a career path if qualified; government does not guarantee income equality.

Centrally Planned (Command) Economy (Collectivist/Left)

Government decides what is produced, how, and for whom. No private property; government distributes goods according to need.

Egalitarianism (Left)

Collectivist value; all people treated equally in political, social, and economic rights. Example

Mixed Economy (Welfare Capitalism)

Combination of free market and government intervention. Supply & demand guides production, but government provides goods/services when necessary. Aims to reduce extreme inequality. Example thinker

Equitable Distribution of Income

Not absolute equality but reducing extreme inequality. Government redistributes wealth through taxation, social programs.