THEORY PRACTICE
TRADITIONAL SYSTEM This system is based on the
customs, beliefs and
traditions typical of a region
or a particular society or
community. In this,
economic decisions are
guided by the skills acquired
through the routine practice,
over centuries, of the same
activities.
People in societies with
traditional economies
generally trade rather than
use money, and depend on
farming, hunting, fishing, or
a combination of the three
for their livelihood.
They have a low level of
productivity, which basically
works for the self-sufficiency
of the community. They
produce what they need to
live, without ambitions to
obtain extra profit.
It is the oldest system.
In the past it was used in
fiefdoms, but today it is hardly
used. We find it in Australian
aborigines and some
indigenous tribes in the
Amazon who live the same
way they lived hundreds of
years ago.
This system seems
unfeasible for developed
countries like Spain, but in
the few countries that is
maintained it adapts mainly to
the theory. In addition, this
system benefits us when we
talk about climate change,
because only what is going to
be consumed is
manufactured. Something
that the theory does not tell
us is that due to food
limitations, people struggle to
get them.
 THEORY PRACTICE

CAPITALIST SYSTEM This system is based on Currently, capitalism can be

private ownership of the considered a market where
means of production and the State does not intervene
the use of capital as a to dictate to companies a
source of wealth.
price and a quantity of
The main elements of production.
capitalism are capital and It is intended to
labor. To articulate both, commercialize all areas of
capitalism proposes to life. With a special emphasis
produce goods and on natural goods, services,
services, and trade them to the digital and the public
extract profits. sphere.
The capitalist model is
flexible, since it has the
ability to adapt to different
historical conditions of
production, marketing and
distribution of goods and
services.
 THEORY PRACTICE

COMMUNIST SYSTEM It is based on a society There are some differences

where social classes are
eliminated, so that, in theory,
there are no people with
greater privileges than
others.
It proposes that the entire
economy be planned from a
central entity, from where it
will be determined how
much to produce and at
what price to sell.
It does not admit political
pluralism, but rather a single
party government that
carries out reforms towards
a communist model.
It proposes the
disappearance of private
property in the means of
production. In this way, the
theory maintains, the
exploitation of the proletariat
and the appropriation of
surplus value by the
capitalists would be avoided.
regarding the practice:
• Whenever a communist
party has governed, it has
done so in an undemocratic
way. Undemocratic means
that there has never been a
universal and protected and
public affairs in a setting of
political elections.
• The communist parties of
the most important
democratic countries, such
as Italy and Spain, became
Eurocommunists.
Eurocommunism meant
identifying with the social
democratic project.
CONCLUSION:
Communism has always
been a bad way out because
it has finally given way to
totalitarian societies.

After reading, serching and understanding this three economic systems, in my

opinion de best one would be a mixed economy with more capitalism. It is true
that it is based on cosumism, and that is really bad for the environment, but I don't
think that makes the others better. A mixed economy permits private participation
in production, which in return allows healthy competition that can result in profit. It
also contributes to public ownership in manufacturing, which can address social
welfare needs.