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Carlyn Joy T.


Major Economic System and the Current Economic System of the


Capitalism is a system of economics based on the private ownership of

capital and production inputs, and on the production of goods and services for
profit. The production of goods and services is based on supply and demand in
the general market (market economy), rather than through central planning
(planned economy). Capitalism is generally characterized by competition
between producers. Other facets, such as the participation of government in
production and regulation, vary across models of capitalism.

A political and economic ideology based on communal ownership and

the absence of class. Communism, which can be thought of as capitalism's
opposite, says that in a capitalist society, the working class (the proletariat) is
exploited by the ruling class (the bourgeoisie).

While based on a Utopian ideal of equality and abundance, as expressed

by the popular slogan, "From each according to his ability, to each according
to his need," communism in practice has only existed under authoritarian
government and has been the source of millions of human rights violations and

Socialism is an economic and political system based on public or

collective ownership of the means of production. Socialism emphasizes equality
rather than achievement, and values workers by the amount of time they put in
rather than by the amount of value they produce. It also makes individuals
dependent on the state for everything from food to health care. China,
Vietnam and Cuba are examples of modern-day socialist societies. Twentieth-
century socialist governments were overthrown in Czechoslovakia, East
Germany and the U.S.S.R.

Philippines has a mixed economy. We have free enterprise where private

investors are free to open production and market them anywhere in the country
or resort to exportation. However, there are sectors within the economy that
operates with government control. There are rules and regulations to follow
especially those sectors that are equated with concerns of national health,
national security and national interest.
Take the case of agriculture. Cereals and other agri-aqua
production must be in the hands of the Filipino farmers/fishermen. Selectively,
palay and corn farmers are given incentives by the government in the form of
subsidized buying price.

Corporations engaged in agriculture, mining, and fishing are required to

be of Filipino owned or majority must be Filipino citizens. Before they embark on
industrial production, they have to consider certain government regulations
attached to them. Because of these limitations, dummies are deemed illegal
and are brought to court for prosecution.

In short, the economic activities in the Philippines are both free of

intervention and with government regulations. It may be regared as mixed