Economic System Design
Te Εhanga β’ How Will Resources Be Shared?
π€ The Big Questions
Every society must answer these fundamental economic questions:
- What goods and services will be produced?
- How will they be produced?
- For whom will they be produced?
Your answers to these questions will shape your entire economic system.
π Step 1: Understand Economic Systems
πͺ Market Economy
Individuals and businesses make decisions. Supply and demand determine prices.
Examples: USA, UK
ποΈ Command Economy
Government controls production and distribution of goods.
Examples: Cuba, North Korea
βοΈ Mixed Economy
Combines market freedom with government regulation and services.
Examples: NZ, Australia, most countries
πΏ Traditional Economy
Based on customs, traditions, and community sharing.
Examples: Some indigenous communities
π Step 2: Position Your Economy
Where does your society sit on these spectrums? Mark with an X:
πΌ Step 3: Key Economic Decisions
Ownership of Resources
Who can own land, businesses, and resources?
Individuals own property
Government owns on behalf of all
Both private and public ownership
Your decision and why:
Essential Services
For each service, decide: Free for all, Subsidised, or Private purchase?
| Service | Free | Subsidised | Private |
|---|---|---|---|
| Healthcare | β | β | β |
| Education | β | β | β |
| Housing | β | β | β |
| Food | β | β | β |
| Transport | β | β | β |
| Internet/Communications | β | β | β |
π΅ Step 4: Money and Trade
Currency
Does your society use money?
If yes, what is your currency called?
Trade with Others
How does your society interact economically with other societies?
π· Step 5: Work and Income
How do people earn a living?
Is there a minimum wage? If so, how is it set?
What happens if someone can't work (illness, disability, age)?
Is there a maximum income/wealth limit?
π§Ύ Step 6: Taxation and Government Revenue
How does your government fund services?
Tax system (if applicable):
Income tax rate: %
Is it progressive (higher earners pay more)?
β Yes β No
Other taxes (list any):
πΏ Te Ao MΔori Economic Concepts
Consider incorporating these MΔori economic values:
- Manaakitanga β Hospitality, caring for others
- Kotahitanga β Unity, collective action
- Kaitiakitanga β Guardianship, sustainable use of resources
- Koha β Gifts that create reciprocal obligations
- Mahi tahi β Working together
How might these values shape your economy?
π Economic System Summary
Our economic system type:
Key features (3-5 bullet points):
How our economy promotes fairness:
Potential challenges with our system: