Chapter 3 - Economic Systems

Economic System

A system Which allocates resources across a society

Pure Capitalism

“What’s yours is yours, what’s mine is mine”

No taxes, no public projects and no organised way in which the society takes care of people unable or willing to take care of themselves.

Pure Socialism

Purest form involves no private property and no market responsibility for everyone’s welfare. Socialist society may be ruled by a single benevolent dictator.

Mixed Economy

Countries which allow free market systems and private ownership, but with government intervention (regulation made by the state). South Africa’s economy is a mixed economy.

Consequentialism

What option has the best consequences

Utilitarianism

One type of consequentialist theory that focuses on which option produces the greatest utility/happiness?

Deontology

What does duty dictate we do in a given situation

Rawls’ principles of justice are:

Equal rights to maximum possible liberty.

Inequalities are only permitted if: the roles, which earn a higher share of resources, are open to all under equality of opportunity and they work to the benefit of the least advantaged group in society (difference principle).