Economy as a Social Institution

      Economy is the social institution that provides the U.S, and any other country with distribution of goods.  We need these goods in order to function.  In this system we provide an exchange to people in the same country or in different countries, in order to get what we need in return.  There are two major forms of economy in the world, and those are capitalism and socialism.

      "Capitalism is a system under which resources and means of production are privately owned..." (Sparknotes).  In this system you either fail or you succeed.  You seek production for yourself in order to try to reach the top, but its hard considering all the competition that people give off in modernized societies.  The capitalist class in capitalism owns the technology, land, and etc.  The other class of capitalism is the working class.  The working class sells their ability to work for a salary in return.

      The other type of economic institution is socialism.  In socialism the means and production is owned by the society.  "Rights to private property are limited..." (Sparknotes).  China is an example of socialism.  The good of the society is more important than individual profit.  The government does it's part by controlling the money that flows in the economy.  In socialism everybody would have the opportunity to to get a hold of goods and services to help them survive, however, there are limitations.  I like to think as socialism as "take what you need, and be happy you do not have anything".


Reference:

http://www.sparknotes.com/sociology/social-institutions/section1.rhtml

http://www.worldsocialism.org/english/what-capitalism