Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
Since the beginning of the United States, there has been a focus on freedom and with that a
free market. The American dream is focus around being able to make something of
yourself for yourself. A free market capitalistic economy is deeply ingrained in our roots,
and therefore the country tends to be resistant of socialistic and communistic markets.
Within the current market place there are three different economy types; communism, free
market capitalism, and socialism. Each of these classes have many distinct differences that
impact their economies in both positive and negative ways. The differences between
socialism and free market capitalism, specifically, impact society and the economy.
One difference that affects the economy greatly, and really defines the differences between
these two market types, is government involvement in the market. In a socialist economy,
like in Finland, the government owns some if not most of the basic businesses in the
society. This allows for the government to easily redistribute wealth so that every citizens’
basic needs are met. This also, however, tends to lead people to not work as hard or leave
to grow in a different market. In a free market capitalist economy the majority of
businesses are privately owned. One of the main positive impacts that this has on the
economy is that the market is able to determine the price and therefore eliminate any
surplus or shortage. This type of economy however is prone to creating a large wage gap.
Entrepreneurship is also affected both positively and negatively depending on the
