Recently in class, we have been discussing different economic systems and how they came to be. This proved both interesting and frustrating to me, as I have always been interested in world economy and how it functions, but frustrating as it is very hard to find an economic system that works. The 3 we discussed were communism, capitalism, and socialism.
Karl Marx and Adam Smith are the two people credited most with the development of these theories. Both of them wanted to help the poor, but in very different ways. In Marx theory of communism, resources would be spread evenly among everyone, therefore there would not be a poor or rich, or a government all together, as there would be piece as no one would fight over resources. In capitalism, over time the economy would slowly even itself out leading to higher quality goods at lower prices. In socialism, there are less regulations over products, making it easier to sell goods no matter what the quality is. Also, Smith's theory on the invisible hand, which is the source of most theories he is part of, was the theory that is the government stayed out of the way of economics, then it would slowly over time rise to become a better over all economy. This would help the poor as an over all better economy results in more chances for someone to gain more wealth, and more jobs that have to be filled with people.
In my opinion, Capitalism is the best. It seems to me like the most reasonably attainable economic system there is. While along the way of setting it up it would be hard, over time the economy would benefit the most out of it. It would be harder to 'get going' along the way, as starting out the system stalls and massive job loss occurs. The problem is that this system is almost worse to the economy then the systems in place today. Below is 3 videos, one on Marx, one on Adam Smith and one explaining the invisible hand theory.
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