The main features of a market economic system

The definition of the economic system covers a complex set of methods through which the economic and economic processes of a particular society are organized: the use of the natural resources of the territory, the creation of any material goods, the distribution and use of the final Product and so on. The oldest type of management in human history is the traditional system. Its origin goes back to the Neolithic revolution, when the first agricultural and cattle-breeding civilizations were created. The traditional system of management did not have an alternative until the XV - XVI centuries. During this period important transformations take place in all spheres of public life, as a result of which absolutely new types of economic systems are born and formed . Market among them was the first and, as demonstrated by practice, the most viable. It has gained popularity in many regions of the planet.

Signs of a market economic system

As already noted, this type of management arose in Europe during the New Age. It was the result of the evolution and later transformation of feudal relations, the large-scale geographical discoveries of this period, the initial accumulation of capital (that is, the appearance on the European markets of a huge amount of silver and gold that were plundered in the colonies) and, of course, the industrial revolution. Essentially, the most important signs of a market
The economic system is a consequence of its decentralization. For a long time, a very serious competitive alternative to the Western market was the planned and command economy (in practice implemented in fascist systems, and later in socialist ones). A distinctive feature of the latter was that all its elements are strictly subordinated to state needs, and all economic issues were considered the exclusive competence of the state. In contrast to this state of affairs, the signs of a market economic system imply the multistructure of forms of ownership of material goods, the means of production, and so on: private, public, collective, and, of course, state. In such circumstances, the government only acts as a guarantor of equal opportunities and norms prescribed in the constitution, but it does not directly interfere in economic processes and has no direct influence on this sphere of public life.

Negative signs of a market economic system

It should also be noted that with this type of management, not everything and not always safely. First of all, the modern market economic system is characterized by weak social security, often a deplorable situation for those categories of the population that are not market-oriented. In addition, as a result of free competition, in addition to the revival of economic relations, there are often such processes, as a result of which the winners of this very competition become sufficiently powerful to interfere in the social and political life of the country. It should be noted that many modern progressive states (the United States, European countries) have chosen a so-called mixed economic system in which governments, on the one hand, encourage the free market, while on the other hand they leave effective ways of influencing the economy at the first signs of the crisis. In addition, mixed farming provides an opportunity to develop a serious social base, as successfully demonstrated, for example, the countries of Scandinavia.