Unit Six Summary

  Unit Six Summary

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Traditional economic systems of the past involved total freedom for producers and consumers, laissez-faire capitalism called for complete individual freedom and competition, and the command economies of most capitalist nations call for much central planning and government control. In today's global economy, unregulated capitalism has led to several problems including the immediate movement of wealth between nations, economic disparity, and global financial crises. To combat these issues and ensure that economic systems work for the maximum benefit, most nations incorporate a degree of economic freedom with a degree of regulation. Your study of economic systems and contemporary issues should help you understand the extent to which liberal values are workable in the economies of our interconnected world today.

Through this study, you should now be closer to having your own ideas about whether liberalism really works, and if in democratic nations economic freedom and economic equality can co-exist.

Challenges for Liberal Democracies	Economic Systems
Regulations in the economy Environmental degradation Capitalist economies Unequal distribution of wealth and poverty Corporate power	Traditional economies Command economies Capitalist economies Minority tyranny Mixed economies

Contemporary Challenges for Economic Systems

What happens when the individual freedoms of individuals interfere with the needs of the group? Many nations and global organizations have developed policies and practices to ensure that human rights are protected. In the final unit that addresses the challenges of liberalism, you will look at individual and collective rights.