3.2 The Components of an Economic System

The economic system components each wield individual power, as well as working together to enable wealth to be created for everyone’s benefit

3.2.1  Making Money: the Creation of Economic Wealth

providing goods and services for the benefit of the population: the engine of an economy

3.2.2  Consumer Spend

consumers are essential to wealth creation (and everyone has wants and needs)

3.2.3  The Economic Role of Government Spend

the objective is to meet people’s needs and support economic growth, but it is contentious

3.2.4  Forms of  Taxation

types of tax, their impact on individuals and the overall economy

3.2.5  Labour: Employment and Training

suitably trained labour is a key component of wealth creation

3.2.6  Supplies: Materials, Goods and Services

necessities, both for wealth creation and for people’s wellbeing

3.2.7  The Financial System

banks, financial services, institutions, interest payment, speculation

3.2.8  Facilities and Infrastructure

supporting wealth creation with a combination of private and government investment

These economic system components interact with each other in market relationships, as described in the next segment



Next segment