Three Forms of Economic Systems We Have After the Market Crash of 2008

1. Command- Capitalist command economy

Command- Capitalist command economy was based on the old communist system were the state own most businesses, and control the economy with a series of rigid planning. This to many is the opposite of the free market economy, we practiced in part, before the market crash of 2008.

A command- Capitalist economy is the actually economy we live in today in the USA, and the European Union. An economy were the state own most of the Banks, and key industries bailed out after the crash.


Although, essentially the free market still rules in some sectors, our Governments are actually the engine of the economy, and are extremely interventionist. It is more a socialistic – market economy, that is still in its making, as our Governments are still preoccupied with stopping our economies from deteriorating any more.

They are in fact in a saving assets mode of thinking by taking over key industries and banks. This means that in the USA, and the UK most Mortgaged property, private business and in part many corporations are in reality owned by the state.

2. Command – Supply Economies

China is in reality a command- supply economy, simply a state that has a free-market system but which could be controlled by the ruling party at anytime; through economic incentives and the Governmental promotion of private and state enterprises through foreign policies.

This system works remarkably well in a crisis, as the State determine energy, monetary, and essential policies on industries. Therefore allowing free enterprise, but controlling it rigidly through the policy of taking over, and changing rules without delay.

 China is now the wealthiest nation in the world in terms of foreign currency reserves. The State invest this in overseas private enterprises, and government bonds. Using money politics to ensure, goods produced in China can be exported, whilst raw material deals are linked with trade.

China is one country that should pull out of the recession quickly, because it is not dependent on one market, and the Government actively deal with any country, that’s open to business, irrespective of political ideal logy.


3. Lassiez-Faire- Capitalist

Common in many Asian Countries, were there is little or no Social assistance programs. The State are really responsible for partly owning essential key National assets, like resources, and some subsidized or state owned industries.

Countries like Indonesia, follow the system were profits from these essential industries are funneled into educational, transport and food programs in the form of subsidies rather than governmental handouts to the poor.

Whilst the informal economy is encouraged, so citizens do not pay tax in this economy but are encouraged to find a way to earn a living, whilst transport, oil, cooking gas, and some essential foods are subsidized to guarantee they remain affordable.

This lassiez- faire policy towards most of the nations citizens, allows free enterprise inside the nation, but also means people are responsible for themselves, rather then the government. This system partially works in countries with a high low income population, and is similar to the economic modal of Europe and the USA, in the early 20th Century.

This system runs well, as long as the State adjust to global conditions, and its citizens are mainly earning enough to not demand change. Awarding you International Academic recognition for your previous academic, and life experience in the form of a degree.

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Anything I Missed?

So these are three Forms of Economic Systems We Have After the Market Crash of 2008.

There you go guys, take all these points into account when entering the stock market.

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