Economic system designates the whole of the economic life of one epoch. In addition the economical elements, above all humans as producers and consumers as well as resources, the economic relations, particularly in the form of production, belong distribution and Konsumtionsprozessen, and the economic order, above all organizations and legal rules. The economic system is by the interdependence of the social subsystems, which affect each other mutually, particularly with the political system verwoben. The term economic system is used without uniformity, particularly in the demarcation for economic system.

Term

Economic system is after the system theory an analytic generic term for all those elements, processes and structures, which can be defined by the common sense of the need satisfaction in view of limited goods as part of the society system of other subsystems such as politics and culture.

An economic system covers first of all the economical elements and participants, above all private and public households as well as enterprises, and their control over production and consumption goodses. In addition come secondly the economic relations, i.e. production, distribution and consumer process in and between the restaurant units. Finally thirdly the economic order developing from cooperating the elements and participants is a component of the economic system; it is based on the institutional rules (economic system, economic constitution). The economic system is coined/shaped considerably by the interdependence with other social subsystems, particularly with the political system. In the science no agreement prevails over it, which term is more comprehensive, to economic system or economic system.

Function of economic systems

An economic system marks a having knappe of goods in connection with the need satisfaction of humans. The discrepancy between unsatisfied needs and limited goods requires in each society problem solution and has in arbeitsteiligen, high-specialized societies for the emergence in its effect connections of a complex, hardly more to brief outline-end network led. The economic system covers the production, the distribution and the consumption of goods under the principle of economy for the satisfaction of the private and public need. In contrast to this the political system usually marks the practice of power on the basis the state of reserved potential of the threat of force and - application as well as the political will formation and its institutional Ausdifferenzierung.

An economic system has to fulfill the following tasks:

• Allocation of the economic powers of decision (who decides - individual or authority Bottom UP or Top
• Control of the appropiate use of means of production and punishment of bad plannings (who controls and decides - market and competition as selection procedure or state and
• Information of the restaurant subjects about the goods scarcenesses and other economically relevant facts (as prices are determined formed - freely or
• Incentives of the restaurant subjects to efficient and innovative behavior (need satisfaction of the consumers and competition as discovery procedures or central planning and
• Co-ordination of planning and actions of the restaurant subjects during the arbeitsteiligen restaurant process (supply and demand form the price or central planning

Types

Economic systems possess a system-rational structure, a system-specific order. This hangs economic order principles, which mechanisms and regulations off of, which link themselves to an overall economic control and coordination system and when its need satisfaction and reduction of the goods scarceness align so the restaurant subjects. Those control and co-ordination elements, which bring the restaurant happening out in their cooperating, are realization object of the economic system theory.

The following factors exert relevant influence on the character of the system-specific order:

• Property (private or state property) and
• Kind of the co-ordination (decentralized or central planning and steering element).
• In addition it comes whether the price formation takes place freely on open markets or is affected and/or determined by national interferences and
• the extent of the opening economic system in relation to other national economies (international division of labor or autarcy).

The economic policy practiced and the pursued administrative policy change economic system substantially.

As forms are to be called:

• Free-market economy (private property, price formation by supply and demand, decentralized planning)
• Planned economy (collective state property, fixed prices and wages, central planning)

These forms are ideal-typical nature. In the reality almost exclusively combinations ("„mixed economy "“) arise. As historical manifestations market and planned economy have themselves so far as

• Capitalism (private means of production) and
• Socialism (means of production put under state control)

developed. Besides there are society-theoretical and - political attempts, a third way to carry out between capitalism and socialism. The longing after a reconciliation of these two forms comes exemplarily to the expression in the "“human restaurant democracy"” (Ota Sik), which "“or "“free-market economy"” (Mikhail Gorbatschow) and the social free-market economy (Alfred Mueller Armack) adjusted socialist free-market economy"”.

Furthermore as political term welfare state marks the historical development of the German state and economic system. The welfare state is characterized by the tendency, the personal preference to subordinate initiative and responsibility of the individual citizen of collective security and the Wertkodex of the governing.

Demarcation

The term economic system can be distinguished from the terms economic system (= whole of the economic basic conditions organization of the economy), to economic constitution (= economically relevant articles of the condition, laws and regulations as well as the created right of the economy), restaurant economics (= classification of historical restaurant ways).

Historical manifestations

The historical manifestations of German economic systems in the modern times the following non-uniform terms can be assigned, which are derived particularly from the respective economic system:

• Federal Republic of Germany - welfare state
• German Democratic Republic - central administration economy
• National socialism - LV military economy
• Weimar Republic - socialnational transition form
• Empire - organized capitalism
• German federation - non-uniform: feudal and liberal-civil orders

Literature

• Rainer become lumpy (Hg.): Restaurant economics, restaurant economics and economic system, Marburg 1996.
• Hans Rudolf Peter: Economic system theory and general administrative policy, 4. revised and extended edition (Oldenbourg publishing house), Munich and Vienna 2002.
• Michael of Prollius: The economic system of the national socialists 1933-1939. Control by emergente organization and political processes publishing house), Paderborn 2003.
• Alfreds and Hans Krsselberg (Hg.): Fundamental ideas to the order theory and political 6. examined and supplemental edition, Marburg 2004.

See also

Economic system, economic policy, economic constitution

Related links

• http://www.mpiew-jena.mpg.de/deutsch/index.html">
• Forum administrative policy
• Order-political portal

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