Please invent your own economic system and explain how it works in 2-3 pages. Remember the types of existing markets are: free socialism communism - Assignment Example

Download file to see previous pages... Although the private sector is given the opportunity to have their say in crucial national decisions, the government may intervene in essential matters that already involve the majority of society. This economic system puts emphasis on the importance of equality in a way that the government’s role as the main authority does not compromise freedom, which is evidently an inherent right of the citizens. The private sector is able to exercise freedom in setting production targets, for the betterment of businesses in both the manufacturing and service industry. On the other hand, the government sets the key policies to guide and govern the private sector, so that it may progress and pay its contributions, which are allocated to enhancing infrastructure, transportation, education and health programs, communication, agriculture and employment opportunities.
A majority of ownership in a proportionate economy is by the private sector; however, despite the private sector’s large share of business ownership, government also owns organizations that provide inexpensive and at some point, free of charge services to people who are unable to pay for the basic necessities. The method of taxation applied in this type of economic system places the burden of paying higher taxes to companies that are able to earn huge monetary gains from their business operations. Although the citizens are also obliged to pay taxes, only less is being required from them by the government, and tax exemptions are also granted to the less-privileged. All the taxes collected are budgeted and distributed equally to finance government programs that aim to alleviate poverty and enhance the quality of living in a nation.
The private sector sets the price for the services and commodities they offer, but the government still regulates these prices to ensure that they will not overprice their products and abuse their freedom for their own ...Download file to see next pagesRead More