Common types of Economic System
CAPITALISM
Is an economic system where the
control of the enterprise is in the hands of individuals and the private sectors.
It is where the ownership and use of the means of production as well as the
production and distribution of goods and services are determined by the
individual producers in the private sector.
Characteristics
1.
Property ownership – it is the right to acquire, use and
dispose of anything of value. The exercise of such right is within the
implementing laws of the government.
2.
Freedom of enterprise – freedom to enter and leave any
business venture. This freedom is governed by the laws pertaining to business
like factory laws, food and drug laws, and other public service laws regulating
these rights.
3.
Competition – since anybody can enter into business, more
people will be producing the same product of different brands. Due to the
number of producers in an industry, competition exists.
4.
Profit motive – is the core of capitalism in the sense that
it is the main reason for the use of properties in entering an industry where
the producers compete for profit.
Evolution of Capitalism
Capitalism was already in existence in the
ancient civilization of
In the 18th
century, merchants had large amounts of money/capital and they were ready to
invest in new products. The steam engine paved the way for such investments.
Factories were set up in
In capitalism, the
individuals are free to make their choice, individuals are to generate income,
how to spend their income and choose the products and services that they want
the companies are also free to determine what product /services to produce or
render, how to allocate the resources, how to produce and how much to
distribute. They are also governed by the law of supply and demand as well as
the price system.
Capitalism is also known as free enterprise
since private individuals are free to join economic organizations, though
there are other names given to capitalism: free-market system, entrepreneurial
system, and laissez-faire.
Disadvantage of Capitalism
Society
1.
Exploitation – the workers are exploited when they receive
low pay for the services rendered. The capitalist derived more profits than the
workers who produce these products did.
2.
The Inequalities – the workers are not treated fairly since low
wages are paid and fewer benefits are enjoyed by them.
Economy
1.
Surplus production – due to the desire for profit, the
tendency is to create scarcity of resources since more resources are utilized
for the production of more products. This can lead to waste since there are
already several firms producing the same product of different brands.
2.
Underemployment – this is the result of oversupply of manpower
on the same line of profession or trade.
3.
Stiff Competition – it may exist among companies
producing the same product of different brands where one company will try to
destroy the other company just to sin the support of the consumers.
4.
Concentration of the economic resources in the hands of the
few
– this may either result in a monopoly or the absence of competition or oligopoly
or competing among the few. This may result in the desperation of the management of
the owners or some limitations to the power of the owners.
Government
·
This
may result in resolving the priorities in terms of the needs of the private
sectors by the government
Countries where Capitalism is prevalent
·
It is a democratic country that practices
free enterprise where the people have the right to expand their properties by
entering into business.
·
There is the freedom of an individual to
enter any business venture where one can maximize profit. This may involve
producing and selling local or imported products.
·
SOCIALISM
Socialism
is the system of public ownership and control of the major means of production
while limited ownership and control of small-scale industries are left to
private individuals but still under the control of the government.
An economic system where there is
public ownership of the means of production and distribution is socially and
democratically managed for the common good.
History
Socialism
began in 1830 in
The
term socialism was first used in the 1830s. at the time, the industrial
revolution was in progress in Europe land the
The new industrial system of the capitalist
faced opposition from various radicals.
One
of these is the socialists, whose idea of socialism is geared towards the
establishment of a Utopian society that is based in cooperation and not a competition and this society will work for the fulfillment of the needs of the
people.
Characteristics
·
Controlled
private property
·
Equal
distribution of wealth
·
Equal
opportunity and benefits for all members
·
Controlled
production and distribution of the needs of the people
·
Provision
of the opportunities for the
satisfaction of the needs and wants of the people
·
The
major means of production are owned and controlled by the government while
small scale industries are left to the private sectors but still under the
control of the government
·
Economic
decisions are planned by the central planning body
·
It
is the road towards the achievement of “full communism”
Advantage of Socialism
It will provide for social,
intellectual, and economic reforms that will lead to modernization and
industrialization development.
Disadvantage of Socialism
Exploitation by socialism and
poverty cannot be overcome. But rather it will result in forced
industrialization. Individual ideology is used to cover up the political
motive, exploitation, and economic knowledge.
The
income that the people receive is not commensurate with the effort exerted. It
is because the people receive equal of the same income.
Countries where Socialism was applied
COMMUNISM
This
is an economic system that allows the complete ownership, management, and
operation of all the means of production and distribution of goods and services
by the government. They implement the doctrines of communism of the Communist
Party of the
History
The
term communism is from the Latin word communis means “common”. Communism
believes that the state is more important than its citizens. This idea came
from Plato, a Greek philosopher, who wrote the classical political treaties,
The Republic. Other writings supporting such an idea are Utopia by Thomas More
in 1516, and the Communist Manifesto written by Karl Marx and Friedrich Engels,
in 1848. These writings influence the rise of communist parties in several
countries.
The
first communist state was
One
reason for this is the weakness of their government especially after the Second
World War another is the strength of the
While
the original idea of communism was Plato’s because of his belief in a society
of common ownership, it is actually Karl Marx who can be called the father of
communism. It was Marx who set down this system of belief as a response to the
poor condition of the working class. Marx thought that the prevalence of
communism would start in capitalist countries. Historical development
proved him wrong. In 1917, Nikolai Lenin and Leon Trotsky established this rule
in
It
was here that for the first time, the theories of communism were applied. And
it was from here that communism will spread its influence in other parts of the
globe.
Characteristics
o
There
is a single party that governs the state
o
All
property is owned by the state
o
The
state controls and supervises all productive activities
o
Everyone
is considered equal, no one enjoys privileges based on the status in society
o
There
is equal distribution of goods and services
o
The
principle “from each according to his ability, to each according to his needs”
is applied
o
There
is no private ownership of property
o
The
economy is centrally planned
o
There
is the use of force
Strengths of Communism
o
Individual
work for the benefit of the state
o
The
government runs the economy of the state
o
Government
choose a person’s work according to capacity
o
Absence
of competition
o
Work
is according to ability, compensation is according to needs
o
Government
dictates prices of goods and services
o
Reward
system for productive workers
o
All
resources/factors of production are nationalized
o
A
system of punishment for various offenses
o
Absence
of social classes
Negative Practices of Communism
o
The
use of violence, war, chaotic revolution, or insurrection as means to obtain
power
o
Dictatorship
does not allow public criticism
o
Use
of totalitarian form government where
there is absolute control
o
Absence
of oppositionist candidates where the voters have actually no choice during
election
o
The
selected few government officials make decisions for the people
o
The
important position in education, government, and military are under the control
of the communist party
o
Absence
of free enterprise
o
Public
ownership of land, banks, natural resources, trade and industries,
transportation, and communication.
o
The
government decides on economic problems that must coincide with the policies of
the communist party
o
The
people who give public criticism to the policies of the communist party are
prosecuted
o
The
people are not allowed to establish organizations or newspapers that will
criticize the party
o
The
practice of religion was discouraged since they treated religion as a hostile
force. Is because the presence of religion may hinder them to use violence in
stopping the unjust practice
Countries where Communism is applied
All
the economic organizations and processes are under the laws of the government
and the Communist Party of the
Red
Communist
China under Mao Tse Tung where the government controls all the industries,
agriculture trade. There is equal distribution of wealth in a commune though
quota was imposed on the workers.
An economic system that is
in line with communism though it is a democratic centralized communist system
where the workers can partake in the operation of a socialized industry and the
farmers can own and cultivate their lands through cooperative agriculture.
Other
countries that practice communism:
1.
2.
3.
4.
5.
OTHER ECONOMIC SYSTEM
FEUDALISM
Feudalism
is a system of relations among the members of the upper class of Medieval
Europe whereby a person is given a piece of land in exchange for military and
political services rendered.
In
a broader sense, feudalism denotes “feudal
society” which is a form of civilization and a type of society with certain
characteristics besides the mere presence of the Lords, vassals, and fiefs. The
people of the era performed civil or military service in exchange for land to
be tilled. “Vassals” belongs to the
warriors class of the period who is the recipient of the land known as a fief of
feudum, while the feudal Lord is the head of the manor. “Manors” are the agricultural states the were formed after the
division of the empire due to its fall.
Thus,
feudalism was derived from the word feudum
denotes that it’s the system of landlordism. It was originally done simply
to establish a mutually protective relationship. The period was characterized
by a chaotic social condition, thus, there was a need for the establishment of
strong military organizations through the use of the land or fief. Therefore, it is more of a
military or political organization than an economic system
The
Lord and the vassals were interlocked in the web of mutual rights and
obligations in a well-protected castle. It undertook an initiative of
importance to the feudal community as a whole.
History
Feudalism
may have the beginning in the chaotic times that characterized the Dark Age
when Barbarians were in control after Alaric. The leader of the Visigoths
captured
The
Dark Ages was followed by the Medieval Period or the Middle Ages where manors
came into being.
Feudalism
reached its height in the middle of the 11th century up to the 13th
century.
Vassals Obligations to the Feudal Lord
1.
he
must render military service at the time when it is needed
2.
he
is responsible for planning all the activities of the manor
3.
Financial
obligation at the time when it is needed by the Lord like a marriage of the
lord’s daughter, part of the ransom’s money when the lord was kidnapped, or
anytime the manor needs some financial contributions.
Causes of the decline of Feudalism
o
land
became so significant and a widespread of money in towns and cities
o
spread
of capitalism and gunpowder
Feudalism was
eradicated in
Countries under Feudalism
The
The Slavic and Scandinavian states were also influenced
by the feudal system of
CACIQUE
Is the system of
landlordism in the
It is a political,
social, and economic system where the local administration was managed by the
cacique. It is a type of bossism, semi
feudalistic and property ownership.
History
It is the counterpart
of the feudalism in the
The caciques were
similar to the feudal barons of medieval
SYSTEM OF
LAND ARRANGEMENTS
·
Inquilino system- it is also known as the “leasing system” since
rents are paid to the cacique for the use of the land. The cacique is an
absentee landlord where he need not have
direct supervision over
the piece of land being loaned since his interest lies on the rents which are
paid in cash or crop equivalent (kind).
·
Kasama system- it is the system of partnership where the
tenant and the cacique contributed to the cultivation of the land then products
will be divided equally.
If the labor plus all
the materials and expenses are shouldered by the tenant while the cacique contributed
only his land 2/3 of the harvest will go to the tenants while the remaining 1/3
will be received by the cacique.
On the other hand, if
50% of the expenses and materials plus the labor are shared by the tenant or
Kasama, while another 50% of the expenses and materials will be shouldered by
the cacique plus island, then the harvest will be divided equally.
·
Tenant-servant System - The tenant enjoyed free board and lodging in
the sense that he was given a small house and lot near the vast land known as hacienda
that he will cultivate. As a servant, his duty is to cultivate the land. In
return, he will receive a fixed share from the harvest whether he has a good or
low harvest.
·
Clearing system – This system applies
to “virgin lands” that require some clearing. During the process of clearing,
no rents are paid to the cacique. But after the clearing, less than 50% of the
harvest goes to the cacique and as the
harvest improved, 50% or more is imposed.
EVILS OF
CACIQUISM
- Usury System – It is the
practice of lending money that prescribed a very high rate of interest
like the following:
a.
Takipan – It prescribed 100%
rate of interest per harvest.
b.
Talindua – It prescribed 50%
rate of interest per harvest.
c.
Terciahan – It prescribed 33-1/3%
interest per harvest.
- Paternalism - It refers to the complete dependence
on the lord where he was seen as a great provider of everything. Such practice, resulted in laziness among the Filipinos who can no
longer decide on their own and cannot stand on their own feet.
- Asking for Free
services
– Because of the utang na loob or debt of gratitude, the money borrowed
is not only paid in cash but even in services.
- Curtailment of the
Right of Suffrage – It is not only the land and its harvest that is
being controlled by the cacique but even his mind specifically his choice
of candidates. The cacique will dictate to his tenants whom to vote for
and failure to follow will mean that their lives will be threatened.
DECLINE
OF CACIQUISM
Caciquism
lasted in the
MERCANTILISM
Mercantilism is a political theory that
was widely accepted in
This
is based on the mercantilist doctrine which states that the wealth of a nation
is measured by the amount of gold and silver it has accumulated through the export
of its products as well as the conquest of small states.
This
was aptly called nationalism through commerce.
History
and Nations who practice Mercantilism
Mercantilism was widespread in
Today,
however, the system of mercantilism no longer exists
Economic
activities emphasized under Mercantilism
·
Precious
metals like gold and silver were used as the measure of the wealth of nations.
·
If
a country has no mines or access to them, then gold and silver should be
obtained by means of trade.
·
Favorable
Balance of Trade must be maintained where exports are greater than its imports.
·
Each
country wishes to have a large population for it will provide for a supply of
labor, big market, and source of soldiers.
·
Consumption
of imported luxury goods is discouraged for it will bring out the country’s
precious metals.
·
Manufacturing
is forbidden in the colonies since they will be the market of their mother
country.
·
Thrift,
saving, and patrimony were regarded as virtues.
When mercantilism was
eradicated, it gave way to a new economic
the system is known as
capitalism.
FASCISM
A
rightist political movement that governed
The
founder of the fascist movement was Benito Mussolini and his followers in
In
Characteristics
·
The
rule of totalitarianism or dictatorship.
·
Complete
control and management by the government of all the political, economic,
social, cultural, and religious affairs of the nation.
·
Some
industries were allowed to be privatized provided they are still under the
control of the government.
·
Patriotism
and war-like policies were imposed
·
All
industries are strictly managed by the government in order to make sure that
the needs of the country are met.
·
Importation
of products from other countries are prohibited
·
Strike
and organizing trade unions are not allowed by the government
·
The
corporation established by the government are run by government workers and
employees.
·
Government
fixed the wages, working hours,s and the production goals of the corporation.
·
The
government controls the newspaper, radio, and other means of communication.
·
Any
violation of the rules of the government may result in punishment, imprisonment, or death of the violator.
·
The
young are encouraged by the government to join the organizations that are
promoting the teaching of fascism
·
The
national planning board plans the economy.
Advantage of Fascism
a.
Emphasis
is centered on the economy.
b.
Workers
enjoy equal wages and benefits.
c.
Discipline
is inculcated among the people starting from their childhood days.
d.
Production
is focused on the needs of the country
e.
The
country does not depend upon the importation of goods from other countries
f.
Production
is not delayed by strikes
g.
Limited
private ownership is allowed
Disadvantage
a.
The
rights and freedom of the people are limited by the government
b.
Violent
and war-like policies are implemented by the government
c.
Presence
of only one political party
d.
Absence
of the freedom of speech and press
e. ViolenCommon types of Economic System
CAPITALISM
Is an economic system where the
control of the enterprise is in the hands of individuals and the private sectors.
It is where the ownership and use of the means of production as well as the
production and distribution of goods and services are determined by the
individual producers in the private sector.
Characteristics
1.
Property ownership – it is the right to acquire, use and
dispose of anything of value. The exercise of such right is within the
implementing laws of the government.
2.
Freedom of enterprise – freedom to enter and leave any
business venture. This freedom is governed by the laws pertaining to business
like factory laws, food and drug laws, and other public service laws regulating
these rights.
3.
Competition – since anybody can enter into business, more
people will be producing the same product of different brands. Due to the
number of producers in an industry, competition exists.
4.
Profit motive – is the core of capitalism in the sense that
it is the main reason for the use of properties in entering an industry where
the producers compete for profit.
Evolution of Capitalism
Capitalism was already in existence in the
ancient civilization of
In the 18th
century, merchants had a large amount of money/capital and they were ready to
invest in new products. The steam engine paved the way for such investments.
Factories were set up in
In capitalism, the
individuals are free to make their choice, individuals are to generate income,
how to spend their income and choose the products and services that they want
the companies are also free to determine what product /services to produce or
render, how to allocate the resources, how to produce and how much to
distribute. They are also governed by the law of supply and demand as well as
the price system.
Capitalism is also known as free enterprise
since private individuals are free to join economic organizations, though
there are other names given to capitalism: free-market system, entrepreneurial
system, and laissez-faire.
Disadvantage of Capitalism
Society
1.
Exploitation – the workers are exploited when they receive
low pay for the services rendered. The capitalist derived more profits than the
workers who produce these products did.
2.
The Inequalities – the workers are not treated fairly since low
wages are paid and fewer benefits are enjoyed by them.
Economy
1.
Surplus production – due to the desire for profit, the
tendency is to create scarcity of resources since more resources are utilized
for the production of more products. This can lead to waste, since there are
already several firms producing the same product of different brands.
2.
Underemployment – this is the result of oversupply of manpower
on the same line of profession or trade.
3.
Stiff Competition – it may exist among companies
producing the same product of different brands where one company will try to
destroy the other company just to sin the support of the consumers.
4.
Concentration of the economic resources in the hands of the
few
– this may either result in a monopoly or the absence of competition or oligopoly
or competing among the few. This may result in the desperation of the management of
the owners or some limitations to the power of the owners.
Government
·
This
may result in resolving the priorities in terms of the needs of the private
sectors by the government
Countries where Capitalism is prevalent
·
It is a democratic country that practices
free enterprise where the people have the right to expand their properties by
entering into business.
·
There is the freedom of an individual to
enter any business venture where one can maximize profit. This may involve
producing and selling of local or imported products.
·
SOCIALISM
Socialism
is the system of public ownership and control of the major means of production
while limited ownership and control of small-scale industries are left to
private individuals but still under the control of the government.
An economic system where there is
public ownership of the means of production and distribution are socially and
democratically managed for the common good.
History
Socialism
began in 1830 in
The
term socialism was first used in the 1830s. at the time, the industrial
revolution was in progress in Europe land the
The new industrial system of the capitalist
faced opposition from various radicals.
One
of these is the socialists, whose idea of socialism is geared towards the
establishment of a Utopian society that is based in cooperation and not a competition and this society will work for the fulfillment of the needs of the
people.
Characteristics
·
Controlled
private property
·
Equal
distribution of wealth
·
Equal
opportunity and benefits for all members
·
Controlled
production and distribution of the needs of the people
·
Provision
of the opportunities for the
satisfaction of the needs and wants of the people
·
The
major means of production are owned and controlled by the government while
small scale industries are left to the private sectors but still under the
control of the government
·
Economic
decisions are planned by the central planning body
·
It
is the road towards the achievement of “full communism”
Advantage of Socialism
It will provide for social,
intellectual, and economic reforms that will lead to modernization and
industrialization development.
Disadvantage of Socialism
Exploitation by socialism and
poverty cannot be overcome. But rather it will result to forced
industrialization. Individual ideology is used to cover up the political
motive, exploitation, and economic knowledge.
The
income that the people receive is not commensurate with the effort exerted. It
is because the people receive equal of the same income.
Countries where Socialism was applied
COMMUNISM
This
is an economic system that allows the complete ownership, management, and
operation of all the means of production and distribution of goods and services
by the government. They implement the doctrines of communism of the Communist
Party of the
History
The
term communism is from the Latin word communis means “common”. Communism
believes that the state is more important than its citizens. This idea came
from Plato, a Greek philosopher, who wrote the classical political treaties,
The Republic. Other writings supporting such an idea are Utopia by Thomas More
in 1516, and the Communist Manifesto written by Karl Marx and Friedrich Engels,
in 1848. These writings influence the rise of communist parties in several
countries.
The
first communist state was
One
reason for this is the weakness of their government especially after the Second
World War another is the strength of the
While
the original idea of communism was Plato’s because of his belief in a society
of common ownership, it is actually Karl Marx who can be called the father of
communism. It was Marx who set down this system of belief as a response to the
poor condition of the working class. Marx thought that the prevalence of
communism would start in capitalist countries. Historical development
proved him wrong. In 1917, Nikolai Lenin and Leon Trotsky established this rule
in
It
was here that for the first time, the theories of communism were applied. And
it was from here that communism will spread its influence in other parts of the
globe.
Characteristics
o
There
is a single party that governs the state
o
All
property is owned by the state
o
The
state controls and supervises all productive activities
o
Everyone
is considered equal, no one enjoys privileges based on the status in society
o
There
is equal distribution of goods and services
o
The
principle “from each according to his ability, to each according to his needs”
is applied
o
There
is no private ownership of property
o
The
economy is centrally planned
o
There
is the use of force
Strengths of Communism
o
Individual
work for the benefit of the state
o
The
government runs the economy of the state
o
Government
choose a person’s work according to capacity
o
Absence
of competition
o
Work
is according to ability, compensation is according to needs
o
Government
dictates prices of goods and services
o
Reward
system for productive workers
o
All
resources/factors of production are nationalized
o
A
system of punishment for various offenses
o
Absence
of social classes
Negative Practices of Communism
o
The
use of violence, war, chaotic revolution, or insurrection as means to obtain
power
o
Dictatorship
do not allow public criticism
o
Use
of totalitarian form government where
there is absolute control
o
Absence
of oppositionist candidates where the voters have actually no choice during
election
o
The
selected few government officials make decisions for the people
o
The
important position in education, government, and military are under the control
of the communist party
o
Absence
of free enterprise
o
Public
ownership of land, banks, natural resources, trade and industries,
transportation, and communication.
o
The
government decides on economic problems that must coincide with the policies of
the communist party
o
The
people who give public criticism to the policies of the communist party are
prosecuted
o
The
people are not allowed to establish organizations or newspapers that will
criticize the party
o
The
practice of religion was discouraged since they treated religion as a hostile
force. Is because the presence of religion may hinder them to use violence in
stopping the unjust practice
Countries where Communism is applied
All
the economic organizations and processes are under the laws of the government
and the Communist Party of the
Red
Communist
China under Mao Tse Tung where the government controls all the industries,
agriculture trade. There is equal distribution of wealth in a commune though
quota was imposed on the workers.
An economic system that is
in line with communism though it is a democratic centralized communist system
where the workers can partake in the operation of a socialized industry and the
farmers can own and cultivate their lands through cooperative agriculture.
Other
countries that practice communism:
1.
2.
3.
4.
5.
OTHER ECONOMIC SYSTEM
FEUDALISM
Feudalism
is a system of relations among the members of the upper class of Medieval
Europe whereby a person is given a piece of land in exchange for military and
political services rendered.
In
a broader sense, feudalism denotes “feudal
society” which is a form of civilization and a type of society with certain
characteristics besides the mere presence of the Lords, vassals, and fiefs. The
people of the era performed civil or military service in exchange for land to
be tilled. “Vassals” belongs to the
warriors class of the period who is the recipient of the land known as a fief of
feudum, while the feudal Lord is the head of the manor. “Manors” are the agricultural states the were formed after the
division of the empire due to its fall.
Thus,
feudalism was derived from the word feudum
denotes that it’s the system of landlordism. It was originally done simply
to establish a mutually protective relationship. The period was characterized
by a chaotic social condition, thus, there was a need for the establishment of
strong military organizations through the use of the land or fief. Therefore, it is more of a
military or political organization than an economic system
The
Lord and the vassals were interlocked in the web of mutual rights and
obligations in a well-protected castle. It undertook an initiative of
importance to the feudal community as a whole.
History
Feudalism
may have the beginning in the chaotic times that characterized the Dark Age
when Barbarians wherein control after Alaric. The leader of the Visigoths
captured
The
Dark Ages was followed by the Medieval Period or the Middle Ages where manors
came into being.
Feudalism
reached its height in the middle of the 11th century up to the 13th
century.
Vassals Obligations to the Feudal Lord
1.
he
must render military service at the time when it is needed
2.
he
is responsible for planning all the activities of manor
3.
Financial
obligation at the time when it is needed by the Lord like a marriage of the
lord’s daughter, part of the ransom’s money when the lord was kidnapped, or
anytime the manor needs some financial contributions.
Causes of the decline of Feudalism
o
land
became so significant and a widespread of money in towns and cities
o
spread
of capitalism and gunpowder
Feudalism was
eradicated in
Countries under Feudalism
The
The Slavic and Scandinavian states were also influenced
by the feudal system of
CACIQUISM
Is the system of
landlordism in the
It is a political,
social, and economic system where the local administration was managed by the
cacique. It is a type of bossism, semi
feudalistic and property ownership.
History
It is the counterpart
of feudalism in the
The caciques were
similar to the feudal barons of medieval
SYSTEM OF
LAND ARRANGEMENTS
·
Inquilino system- it is also known as the “leasing system” since
rents are paid to the cacique for the use of the land. The cacique is an
absentee landlord where he need not have
direct supervision over
the piece of land being loaned since his interest lies on the rents which are
paid in cash or crop equivalent (kind).
·
Kasama system- it is the system of partnership where the
tenant and the cacique contributed to the cultivation of the land then products
will be divided equally.
If the labor plus all
the materials and expenses are shouldered by the tenant while the cacique contributed
only his land 2/3 of the harvest will go to the tenants while the remaining 1/3
will be received by the cacique.
On the other hand, if
50% of the expenses and materials plus the labor is shared by the tenant or
kasama, while another 50% of the expenses and materials will be shouldered by
the cacique plus island, then the harvest will be divided equally.
·
Tenant-servant System - The tenant enjoyed free board and lodging in
the sense that he was given a small house and lot near the vast land known as hacienda
that he will cultivate. As a servant, his duty is to cultivate the land. In
return, he will receive a fixed share from the harvest whether he has a good or
low harvest.
·
Clearing system – This system applies
to “virgin lands” that require some clearing. During the process of clearing,
no rents are paid to the cacique. But after the clearing, less than 50% of the
harvest goes to the cacique and as the harvest improved, 50% or more is imposed.
EVILS OF
CACIQUISM
- Usury System – It is the
practice of lending money that prescribed a very high rate of interest
like the following:
a.
Takipan – It prescribed a 100%
rate of interest per harvest.
b.
Talindua – It prescribed a 50%
rate of interest per harvest.
c.
Terciahan – It prescribed 33-1/3%
interest per harvest.
- Paternalism - It refers to the complete dependence
on the lord where he was seen as a great provider of everything. Due to
such practice, resulted to laziness among the Filipinos who can no
longer decide on their own and cannot stand on their own feet.
- Asking for Free
services
– Because of the utang na loob or debt of gratitude, the money borrowed
is not only paid in cash but even in services.
- Curtailment of the
Right of Suffrage – It is not only the land and its harvest that is
being controlled by the cacique but even his mind specifically his choice
of candidates. The cacique will dictate to his tenants whom to vote for
and failure to follow will mean that their lives will be threatened.
DECLINE
OF CACIQUISM
Caciquism
lasted in the
MERCANTILISM
Mercantilism is a political theory that
was widely accepted in
This
is based on the mercantilist doctrine which states that the wealth of a nation
is measured by the amount of gold and silver it has accumulated through the export
of its products as well as the conquest of small states.
This
was aptly called nationalism through commerce.
History
and Nations who practice Mercantilism
Mercantilism was widespread in
Today,
however, the system of mercantilism no longer exists
Economic
activities emphasized under Mercantilism
·
Precious
metals like gold and silver were used as the measure of the wealth of nations.
·
If
a country has no mines or access to them, then gold and silver should be
obtained by means of trade.
·
Favorable
Balance of Trade must be maintained where exports are greater than its imports.
·
Each
country wishes to have a large population for it will provide for a supply of
labor, big market, and source of soldiers.
·
Consumption
of imported luxury goods is discouraged for it will bring out the country’s
precious metals.
·
Manufacturing
are forbidden in the colonies since they will be the market of their mother
country.
·
Thrift,
saving and patrimony were regarded as virtues.
When mercantilism was
eradicated, it gave way to a new economic
the system is known as
capitalism.
FASCISM
A
rightist political movement that governed
The
founder of the fascist movement was Benito Mussolini and his followers in
In
Characteristics
·
The
rule of totalitarianism or dictatorship.
·
Complete
control and management by the government of all the political, economic,
social, cultural and religious affairs of the nation.
·
Some
industries were allowed to be privatized provided they are still under then
control of the government.
·
Patriotism
and war-like policies were imposed
·
All
industries are strictly managed by the government in order to make sure that
the needs of the country are met.
·
Importation
of products from other countries are prohibited
·
Strike
and organizing trade unions are not allowed by the government
·
The
corporation established by the government are run by government workers and
employees.
·
Government
fixed the wages, working hour and the production goals of corporation.
·
The
government controls the newspaper, radio and other means of communication.
·
Any
violation to the rules of the government may result to punishment, imprisonment
or death of the violator.
·
The
young are encouraged by the government to join the organizations that are
promoting the teaching of fascism
·
The
national planning board plans the economy.
Advantage of Fascism
a.
Emphasis
is centered on the economy.
b.
Workers
enjoy equal wages and benefits.
c.
Discipline
is inculcated among the people starting from their childhood days.
d.
Production
is focused of the needs of the country
e.
The
country does not depend upon the importation for goods from other countries
f.
Production
is not delayed by strikes
g.
Limited
private ownership is allowed
Disadvantage
a.
The
rights and freedom of the people are limited by the government
b.
Violent
and war-like policies are implemented by the government
c.
Presence
of only one political party
d.
Absence
of the freedom of speech and press
e.
Violent
means are used to achieve their goals
f.
There
is no respect for private life of the people
g.
Spiraling
of prices of the products
h.
The
minorities are exploited and killed in the process of achieving their goals
i.
The
secret police are in charge of the opposition
Countries
that implemented Fascism
Italy
– Benito Mussolini started fascism in Italy; Germany – Adolf Hitler was the
leader who established the fascist state in Germany; Hungary – the Arrow Cross
fascist party led by fascism in the 1930’s’; Romania – the Iron Guard fascist
political party was the strongest party in Romania; Japan – in 1930, the
fascist group became famous in Japan; Argentina – dictatorship under the
leadership of President Juan D. Peron was established in Argentina from
1944-1955; Spain- during the Spanish civil war (1936-1939), the France
Espanola” a fascist group, supported the revolution headed by Francisco Franco
when he won as he managed a fascist type
of government in Spain.t
means are used to achieve their goals
f.
There
is no respect for private life of the people
g.
Spiraling
of prices of the products
h.
The
minorities are exploited and killed in the process of achieving their goals
i.
The
secret police are in charge of the opposition
Countries
that implemented Fascism
Italy
– Benito Mussolini started fascism in Italy; Germany – Adolf Hitler was the
leader who established the fascist state in Germany; Hungary – the Arrow Cross
fascist party led by fascism in the 1930’s’; Romania – the Iron Guard fascist
political party was the strongest party in Romania; Japan – in 1930, the
fascist group became famous in Japan; Argentina – dictatorship under the
leadership of President Juan D. Peron was established in Argentina from
1944-1955; Spain- during the Spanish civil war (1936-1939), the France
Espanola” a fascist group, supported the revolution headed by Francisco Franco
when he won as he managed a fascist type
of government in Spain.
Related Topics
·
Introduction of Microeconomics
·
Scarcity
·
Production possibilities
·
Basic Economic Problem
·
Circular
flow of Economic Activity
·
Common
types of Economic System
·
Economic resources
·
Demand supply and markets
·
Demand
·
Supply
·
Elasticity of demand and supply
·
Market
·
Surplus
·
Shortage
·
Laws
that aim to protect consumers.