The Most Successful Economic System, Ranked

Voting rules: Choose the economic system you think is the most successful!

Updated on May 2, 2024 06:57

In an age where economies shape the globe, understanding which economic system leads to prosperity is key. As nations strive to boost their fortunes, the question of which economic doctrines best foster growth and wellbeing remains paramount. This site allows communities to contribute their insights by voting for the economic systems they believe are the most successful. Through collective effort, we can glean a clearer picture of effective economics. Each vote cast on this site reflects a user's personal experiences and understanding of how different economic systems impact their daily lives. This data, gleaned from worldwide inputs, builds into a dynamic ranking that reflects real-time public opinion. By engaging with this, users not only educate themselves about various economic beliefs but also influence the global conversation on economic efficacy.

What Is the Most Successful Economic System?

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54
votes
Capitalism

Capitalism is a system where private individuals or businesses own and operate the means of production. It promotes competition, innovation, and efficiency, and has been credited with driving economic growth and raising living standards.
Capitalism is an economic system characterized by private ownership of means of production, where individuals and businesses operate for profit and compete in the marketplace. It is based on the principle of free-market exchange, where prices, production, and distribution of goods and services are determined by supply and demand. Capitalism fosters entrepreneurship, innovation, and individual initiative, allowing individuals to pursue economic activities according to their own interests and abilities.

Private Ownership: Individuals and businesses have the right to own and control resources, property, and means of production.

Profit Motive: The drive to earn profits and accumulate wealth is a central aspect of capitalism.

Free Market: Prices and allocation of resources are determined by supply and demand in a competitive marketplace.

Competition: Various entities compete for market share, leading to efficiency and innovation.

Limited Government Intervention: Capitalism promotes minimal government interference in the economy.
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42
votes
Socialism

Socialism is a system where the means of production are owned and operated by the state or by the workers themselves. It aims to reduce inequality and provide for the needs of all citizens, and has been credited with promoting social justice and equality.
Socialism is an economic and political system where the means of production, distribution, and exchange are owned and regulated by the community as a whole. It aims to reduce economic inequalities and promote social welfare.

Public Ownership: Socialism advocates for public ownership of key industries, such as healthcare, education, and transportation.

Wealth Redistribution: Socialism emphasizes the redistribution of wealth to ensure a more equitable distribution of resources and opportunities.

Social Welfare: It emphasizes the provision of social safety nets, including healthcare, education, and social security, to ensure the well-being of all citizens.

Central Planning: Socialist system often involves central planning to coordinate economic activities and achieve collective goals.

Worker Control: It promotes worker self-management and democratic decision-making within the workplace.
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13
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Mixed Economy

A mixed economy is a system that combines elements of both capitalism and socialism. It allows for private ownership and competition, but also includes government intervention and regulation to ensure social welfare and prevent market failures.
The mixed economy is an economic system that combines elements of both market and command economies. It allows for private ownership and entrepreneurship, while also involving some degree of government intervention and regulation. The mixed economy seeks to balance the advantages of free market competition with the need for government oversight and social welfare.

Private Ownership: Private individuals and businesses have the right to own property and resources.

Profit Motive: Encourages individuals and businesses to maximize their profits.

Government Regulation: Government enacts laws and regulations to protect consumers and ensure fair competition.

Social welfare programs: Government provides social safety nets, such as healthcare, education, and welfare.

Mixed Resource Allocation: Both market forces and government decision-making determine resource allocation.
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7
votes
Seattle Municipal Archives · CC BY 2.0

Market Economy

Adam Smith

In a market economy, the prices of goods and services are determined by supply and demand. It promotes free enterprise and competition, and has been credited with promoting innovation and efficiency.
A market economy is an economic system in which decisions regarding production, distribution, and investment are driven by the interactions of individuals and businesses within a market. It is characterized by private ownership, free competition, and the pursuit of profit.

Private ownership: Individuals and businesses have the right to own property and resources.

Free competition: Multiple producers and consumers can freely enter the market, allowing for competition.

Profit motive: Participants seek to maximize their profits and financial gains.

Supply and demand: Prices are determined by the interaction of supply and demand in the market.

Price mechanism: Prices serve as signals, guiding allocation and resource distribution.
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19
votes
Лебешев Борис Ильич (1905-?) · Public domain

Command Economy

Karl Marx and Friedrich Engels

In a command economy, the government controls the production and distribution of goods and services, and sets prices and wages. It aims to promote social welfare, but has been criticized for being inefficient and limiting individual freedoms.
A command economy is an economic system in which centralized authorities, typically the government, allocate and control all resources and economic activity. The key feature of this system is the centralized planning and decision-making power that determines what goods and services are produced, how they are produced, and who receives them.

Centralized Planning: All economic decisions are made by the central government.

State Ownership: The state owns and controls most, if not all, means of production.

Allocation of Resources: Resources are allocated according to the government's plan and priorities.

Redistribution of Wealth: Income and wealth are redistributed to achieve more equitable outcomes.

Limited Consumer Choice: Consumers have limited options and choices in terms of available goods and services.
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15
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Welfare Capitalism

Welfare capitalism is a system where businesses provide benefits and services to their employees beyond their wages, such as health insurance, retirement plans, and job training. It aims to promote employee well-being and loyalty, and has been credited with improving labor relations and productivity.
Welfare capitalism is an economic system that combines elements of a market economy with a social welfare state. It is characterized by private ownership of capital and the means of production, but with extensive government intervention to ensure social protection and promote economic equality.

Mixed Economy: Welfare capitalism combines elements of both capitalism and socialism, with a mixed economy that allows for private enterprise and ownership, but with government intervention and regulation to ensure social welfare.

Social Safety Nets: A key aspect of welfare capitalism is the development of extensive social safety nets, including programs such as unemployment benefits, healthcare, and pensions, to ensure the well-being and security of citizens.

Income Redistribution: Welfare capitalism often includes progressive taxation and income redistribution measures designed to reduce income inequality and support the less affluent members of society.

Government Regulation: Under welfare capitalism, governments play an active role in regulating businesses, setting minimum wages, and enforcing workplace safety standards to protect workers and promote fair practices.

Collective Bargaining: The system recognizes the importance of collective bargaining between employers and employees, allowing workers to negotiate fair wages, benefits, and working conditions through labor unions.
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6
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Distributism

Distributism is a system that seeks to promote widespread ownership of property and the means of production, rather than concentration in the hands of a few. It aims to promote economic democracy and social justice, and has been advocated by some Catholic social thinkers.
Distributism is an economic and political philosophy that advocates for the widespread distribution of property and means of production. It aims to create a society where economic ownership is more widely dispersed among individuals rather than concentrated in the hands of a few.

Property Distribution: Distributism emphasizes the importance of ensuring widespread ownership and control of property, preventing the concentration of wealth and power.

Subsidiarity: It promotes the principle of subsidiarity, which suggests that decision-making power should be decentralized and kept at the most local level possible.

Small Scale Enterprises: Distributism supports the idea of small-scale businesses and craftsmen, where ownership and control remain in the hands of individuals and families, rather than large corporations.

Social Justice: It seeks to address social and economic inequalities by promoting a just distribution of resources and opportunities.

Ethical Considerations: Distributism aims to integrate ethical considerations into economic practices, emphasizing the importance of fair wages, worker rights, and responsible production.
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6
votes
Islamic Economics

Islamic scholars and jurists

Islamic economics is a system that is based on the principles of Islamic law, or Sharia. It aims to promote social welfare and justice, and incorporates elements of both capitalism and socialism.
Islamic Economics is an economic system based on principles derived from Islamic teachings, particularly the Quran and the Hadith. It aims to promote economic justice, fair distribution of wealth, and social welfare while adhering to Islamic moral values.

Shariah Compliance: All economic transactions must adhere to the principles of Islamic law.

Prohibition of Interest: Lending or borrowing money on the basis of interest (usury) is strictly prohibited.

Wealth Redistribution: There is an emphasis on redistributing wealth to reduce economic disparities and ensure social welfare for the less privileged.

Shared Risk and Profit: Partnerships and profit-sharing arrangements are encouraged, promoting shared risk and incentivizing entrepreneurship.

Prohibition of Speculation: Speculative practices, such as gambling and uncertainty-based transactions, are forbidden.
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9
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Green Economy

A green economy is a system that aims to promote sustainable development and reduce environmental impact. It incorporates principles of ecological economics, and has been advocated by some environmentalists and social justice advocates.
The Green Economy is an economic system that aims to achieve sustainable development by promoting environmental preservation, resource efficiency, and social equity. It seeks to decouple economic growth from environmental degradation and prioritize clean technologies and practices. The goal of the Green Economy is to create a more inclusive, low-carbon, and resource-efficient society.

Environmental preservation: Promotes the preservation and conservation of natural resources and ecosystems.

Resource efficiency: Focuses on optimizing the use of resources by minimizing waste and maximizing productivity.

Social equity: Strives for fair and equitable distribution of resources, benefits, and responsibilities among all members of society.

Decoupling economic growth: Aims to achieve economic growth without increasing environmental degradation.

Clean technologies and practices: Promotes the adoption of technologies and practices that minimize pollution and resource depletion.
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6
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Participatory Economics

Participatory economics is a system that seeks to promote economic democracy and social justice by giving workers and consumers more control over the production and distribution of goods and services. It has been advocated by some anarchist and socialist thinkers.
Participatory Economics, also known as Parecon, is an economic system that aims to address the flaws of capitalism and central planning. It seeks to create a more equitable and participatory society by prioritizing democratic decision-making and the well-being of all individuals involved in the economy.

Decision-Making: Decisions are made through democratic, participatory processes where all individuals have an equal say.

Labor Allocation: Jobs are established based on individual skills, interests, and desires, as determined through a participatory process.

Remuneration: Compensation is based on the duration, intensity, and onerousness of the work, rather than on ownership or bargaining power.

Self-Managed Workplaces: Enterprises are managed by the workers themselves, ensuring democratic control and decision-making.

Balanced Complex Input and Output: Inputs and outputs are balanced to avoid overconsumption or deprivation, while considering environmental sustainability.

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Discussion

Ranking factors for successful economic system

Economic growth

This refers to the increase in economic output or GDP over time. A successful economic system should aim to achieve sustained economic growth.
Income and wealth distribution

A successful economic system should aim to distribute income and wealth fairly, reducing poverty and inequality.
Employment

A good economic system should create employment opportunities for its citizens, reducing unemployment and underemployment.
Price stability

A stable economic system should maintain stable prices, avoiding inflation or deflation.
Innovation and creativity

An economic system that encourages innovation and creativity is more likely to prosper and succeed.
Environmental sustainability

An economic system that promotes environmental sustainability and addresses climate change concerns.
Access to basic needs

A successful economic system should provide its citizens with access to basic needs such as healthcare, education, and housing.
Government regulation

Government regulation is necessary for ensuring a level playing field and avoiding market failures.

About this ranking

This is a community-based ranking of the most successful economic system. We do our best to provide fair voting, but it is not intended to be exhaustive. So if you notice something or economy is missing, feel free to help improve the ranking!

Statistics

1222 views
177 votes
10 ranked items

Voting Rules

A participant may cast an up or down vote for each economy once every 24 hours. The rank of each economy is then calculated from the weighted sum of all up and down votes.

More information on most successful economic system

Economic systems have been a topic of debate for centuries, with various countries and societies adopting different models to manage their resources, wealth, and production. The most successful economic system is a highly subjective matter, as it depends on various factors such as cultural values, political ideologies, and historical contexts. However, most economists agree that a successful economic system should promote growth, stability, and prosperity for all its citizens. Some of the most popular economic models include capitalism, socialism, and communism, each with its strengths and weaknesses. While capitalism emphasizes individual property rights and free markets, socialism aims to promote social equality and collective ownership of resources. On the other hand, communism advocates for a classless society and the abolition of private property. Understanding the key features of each economic system is crucial in evaluating their effectiveness and determining which model is best suited for different societies.