The Economy Essay

899 WordsNov 9, 20094 Pages
The Economy Are we in a recession? One day everyone is saying yes! But the next day it seems like we have yet to hit rock bottom and are just in a slump. Who do we blame? The government for the massive debt? Or should we blame the people of America? Since we are a capitalist country, have a free trade economy and we are the ones who elected President George W. Bush in the first place. In 1700 AD, was the start of the Industrial Revolution and Urbanization. Farmers began to use more advanced technology to produce food by using equipment and machines. The development of manufacturing boomed and finally the Industrial Revolution was in progress in the mid 1800’s. Large amounts of people were losing their jobs due to the boom of the revolution. The numbers of working farmers dropped drastically because they were not needed as food producers. The majority of the farmers moved from their large plots of land to cities to find work in factories that were popping up everywhere. Cities were growing and expanding due to the urbanization that shifted the population from the countryside to the city. Today, there are four economic systems: command, traditional, market and mixed. Traditional economy is when decisions are based upon past experiences; they are organized by following their belief systems. Command economy is an economy in which decisions are made by a an authority figure (i.e. Fidel Castro or Adolf Hitler). In a market economy, decisions are made by the society as a whole and based on their wants and needs. Residents can make their own decisions by selling and buying in the market place. A mixed economy is an economy that has characteristics of the command and market economy. Citizens, businesses and the government each play a role in making decisions. Within these economic systems are the four basic resources: land, labor, technology and capital.

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