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This is due to the workings of democracy. The definition of both concepts is the best starting place. Economics is the social science…
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Download file to see previous pages This includes how to proceed with the economic system.
Political systems would not have the money or means to decide without the economic systems. For example, the American political system would not have money or means without the taxation on the American economic system. The American economic system would not function well without laws passed by the American political system. Thus both of the entities are intertwined by the essence surrounding both systems.
The problems occur when production, distribution, and consumption is not managed through proper laws. An example would be the current American banking crisis. Uneven distribution of credit allowed too much consumption without enough production of real money. Banks would loan $100,000 to people that could not afford the mortgage. Then the banks would foreclose. However, banks then became property poor, with no real money value. Without proper laws for the balance of production, distribution, and consumption the whole system can crash. That is why there must be separation between the two systems. So a checks and balance system can be in order.
The economic system called feudalism is related to the Middle Age economic system. This system included lords, vassals, and fiefs. The lords are possessors of land. Vassals are works of the land. Fiefs are the land or farms. For this system to work, goods were produced for lords by vassals through fiefs allotted them to work. There was little or no money. Goods, livestock, and services were provided by the workers for their bosses on the boss’ land.
The feudalism economic system survived until a few factors changed. The Renaissance, the decrease of the profession of being a soldier, and the Industrial Revolution created the decline of feudalism. Each of these reason chipped away at the feudalism economic system.
The Renaissance changed the balance through knowledge. More young men wanted to learn instead of becoming a ...Download file to see next pagesRead More
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