Economic Systems

Economic system that motivated Imperialist countries 

System was established during the Commercial/Industrial Revolution

Based on the use of capital (money); goal is to make as much profit as possible. 

No private property

All people are paid the same and provided the same basc resources

People have the right to private property

Desires a favorable balance of trade (selling more goods than buying)

The people own the means of production, but the government makes all decisions

Prices are set by the government, not governed by supply and demand

All basic resources are provided (job, housing, clothing, food)

First written about by Adam Smith

Mother country exploits natural resources of colony

Government does not interfere with economy 

Laissez faire

Businesses set prices based on consumer need, with the idea of supply and demand

Has a free market economy

Economic system developed during the Age of Exploration

System created during the Industrial Revolution in response to the injustices of Capitalism 

Created by Karl Marx