Dy, Cedric Vladimir U. Tan, Julian Jacob Y. ENGLRES

Dy, Cedric Vladimir U. Tan, Julian Jacob Y. ENGLRES C-31 First Draft 3. 0 Factors of a mixed economy The factors of a mixed economy usually consist of a selection of freedoms like possessing means of production examples like farms, plants & stores. Another is that people are free to contribute in administrative decisions (Mattick, 1969). They are also free to travel so that transportation of products may be possible, business transaction may also be made because of traveling, it can also allow personnel to go places they are required to go to (1969).

People also have the freedom of buying or selling required materials or products for private use or for merchandising to (1969). Personnel hiring or firing is also authorized to the owner of a company to maximize or uphold his association’s regular production of wealth to (1969). Making transaction, forge business partnerships, generate markets are also possible because the people are permitted to communicate freely in newspapers, books, advertisement to (1969). They also have the right to peacefully protest about the government to (1969).

CED According to Ikeda, they are also given the right to benefit from the state owned facilities, transportation, and services that are financed through the citizen’s tax similar to libraries, roads, schools, hospitals, banks, communication services and water systems (1997). CED Ikeda also said that in spite of all this freedoms, the government provided some rule and regulation to control citizens like guidelines for the environmental, consumers, incorporation laws and tariffs and quotas to manage import and export (1997). CED 3. To possess means of production The people in China had the freedom to the means of production. Materials that are used by people to make products are the means of production (Evans, 1975). According to Mattick, the instruments of labor and subjects of labor are the two types of means of production (1969). Evans said that tools, factories and infrastructures are examples of the instruments of labor while natural resources for materials are subjects of labor (1975). Therefore, as Mattick said with the instruments of labor, people work on the subjects of abor to create a desired product (1969). CED 3. 1. 1 Allowed to utilize farms for profit When China reformed citizens were allowed to utilize farms for their income. Dawson concurs that the power of the “central commune administration” continued to decrease and in the end the farms were returned (1970). Sanders says that because the commune structure was fully broken down a new system was implemented, the contract responsibility system as the governmental model for the whole nation (2008).

Responsibility system was implemented for 98 percent of all the farms before the year 1984 ended and almost all communes have been ended (1970). According to Sanders, because of an increase of the number of free markets for farm products and improved promotion potential and growing output farm incomes quickly increased (2008). CED 3. 1. 2Permitted to construct factories and stores Sanders said that as a way of putting a stop to the youth’s unemployment and together increase the materials of “light industrial products” (2008).

According to MacFarquhar, after the Cultural Revolution, private-owned businesses were also permitted (1987). Streets were normally filled with vendors like tinkers, tailors and cobblers (1987). CED Lardy said that because of the independence of company managers innovation increased. The quotas were no longer given that much importance compared to before. Companies also produced a lot of new product for the market. The government also allowed the compensation from good output with the use of bonuses.

Because of this foreign firms were officially recognized in order for China to enter international trade (2007). CED 3. 2 To organize private and state enterprises In a state enterprise the organization is owned and organized by the state. Some examples of state enterprises are utilities like gas and electricity, telecommunications, and transportation (Vernon, 1981). Private enterprise is an organization that is free from state possession and management (Thirkell, 1948). CED 3. 2. 1Capitalism and Socialism

There are many different ideas or systems of how an economy should be run. The two most common are capitalism and socialism. They are very different in how they view who runs the economy. Most economies have ideas from both systems, and become more of one than the other. CED According to Woodbey, capitalism is an economic system wherein manufacturing and giving out of merchandise are done by private or corporate enterprises (1903). Neznanov said that capitalists believe that the state should not intervene in the economy (1983).

He also said that they also believe that the efficiency of the economy will be caused by the laws of supply and demand (1983). There is a high competition in supplying or receiving a service or product in capitalism, suppliers compete with each other and consumers compete with each other (Woodbey, 1903). The suppliers want to get a good deal on their product while the consumers want to get the cheapest deal in buying their products (1903). CED Novack said that the state should be in authority on manufacturing and giving out of products in socialism (1970).

This contrasts with capitalism where free markets and property is privately owned. Woodbey says that capitalism is described by competition while socialism is described by cooperation (1903). CED Lichtheim said that in the late eighteenth century at the time of Industrial Revolution, many of the laborers were becoming poor and so the owners of the factories became rich (1983). According to him, therefore, the laborers asked for share from the industry’s income (1983). Thus, because of the writings of Karl Marx and Friedrich Engels socialism was then called communism (1983). CED