Communism (development and fall)
Communism economics means an
economic system where all planning and decisions are made by only government. Hence
the decision of goods and services also will be decided by government based on
what is important and useful and necessary rather than what the demand is. The
scholar related to communism is Karl Marx.
Apparently after the peasant
revolution in Russia, there were socialist economics which is believed to be
similar as communist. The scholar or philosopher of this socialist economic system
was Vladimir Lenin. Communism tends to occur in agrarian based economics where
their activity mainly depends on agriculture. There was a fall of communism
economics id due to failure in planned agriculture and establishing of
classless society.
After the fall of communism,
there was a capitalist economic whereby privatization took place. Small
businesses took places to recover the Hungarian economy with capitalist idea.
Adam smith (father of modern economics)
The Wealth of nation…….invisible
hand concepts introduced. (Laissez fair economic or Free market economy)
Apart from that he also
popularizes few ideas and principles such as principle of supply and demand,
elasticity, utility and the rest.
He believed that human being investing
wealth for a high return.
