Talk about the economic system in china and then the U.S - Essay Example

Economic system in China China is one of the most developed countries in the world in terms of its economic power and abilities. China has a blend of socialism which and capitalistic tendencies as the core guiding principles of the economy. Thus, it is safe to mention that China has a mix or cross breed of capitalism which is basically doing business for the purpose of making profit while socialism also calls for betterment and ensuring the welfare of the citizens is covered. It is important to note and mention that the GDP or the overall economy of China grew by over ten percent which is a double digit figure in the recent past.

The growth rate of China economy is higher than other developed countries due to restructuring of the old economic structures and policies. The revamp and growth was necessitated by the enabling environment that was created by the economic class. For instance, they shifted the cities and urban areas to be wealth creation centers while using the rural areas for manufacturing (Ikenberry, 27). The economic wealth and prosperity is however shared or distributed by the state to all the devolved units of government.

This is to say that the government has a hold on the economic patterns and regulates the ownership of private businesses. The regulation bby the government is aimed at balancing the socialistic aspect and capitalism. In principle, the economy is structured or macro-organized in such a way that wealth created in a particular area must live positive externality on the lives of that area, either through employment or construction of infrastructure which are all marks of economic growth and excellence.

Economic system of the United States of AmericaThe United States of America has a free market economy where the activities of the buyers or consumers and the sellers or the producers determines the equilibrium. Equilibrium refers to the price level in the money and commodity markets and the profits. In principle, the government hold in the process of wealth creation is very minimal. Therefore, individual owners of business who could also be called capitalists have the free power to control their business make profits and use the proceeds thereafter as they please (Bruinsma, 9).

There are economic policies such as the minimum wage policy and the trade unions which strive to ensure that the business owners or capitalists operate in a fair manner. The trade unions or the labour organizations are also a critical component of the economic system because they present a room and chance for collective bargaining so that the capitalists do not misuse their privilege. In principle, there is some degree of freedom because a person who wishes to create wealth in the United States of America is free do so without any legislative bottlenecks from the government.

It is the entire choice of a producer say of a food or clothing item to decide the price level and the quantity to produce. This would naturally or conventionally be set by the market forces of demand and supply.Work citedBruinsma, Jelle. World agriculture: towards 2015/2030. An FAO perspective. Earthscan Publications Ltd, 2003.Ikenberry, G. John. "The rise of China and the future of the West: can the liberal system survive?." Foreign affairs (2008): 23-37.