Showing posts with label Planned economy. Show all posts
Showing posts with label Planned economy. Show all posts

Social vs. Economical system

If these two systems could or not be compared we should first lay out some definitions.

social systemThe social system is represented by people or groups of people. It is a social structure that refers to entities or groups of people that are definitively in relation to each other by having different functions, characteristics, origin or status. A social system is comprised of interdependent set of cultural and structural elements understood as a unit. Sociology is the study of human social behavior and especially the study of the origins, organizations, institutions and development of human society.

economic systemThe economic system encompasses the production, distribution or trade of goods and services and consumption by different individuals, businesses, organizations, or governments. Economy as a study deals with the production and consumption of goods and the transfer of wealth and explains how people interact within markets to get what they want or how they accomplish certain economical goals.

To understand if the systems are comparable or not we should probably dig even more and try to outline also the basic differences between socialism and capitalism.