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 Wealth Creation
classical definition of how wealth is created, GDP, property rights
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