Overview of econom

I will write about contents which are related to Japanese economy for 10 weeks. It may be difficult for me to complete this blog, but I think I will stick it out! The first week content is overview of economy.

First: definition of economy.

Economy is the system which adjust activity of production or indicate the production itself. This express is very abstract so I will express more simply. Economy is the system which exchanges between money, thing, and service and the system follow rules including a low and custom of business. We get money from income that we have earned, save, profit that we have invested and constantly income of real estate and finance …and buy various merchandise or service.  

Normally, in a capitalistic economy, We have to work to get money. Expressing concretely, because people have to produce things and service that exchange to money to keep a family budget, most of Japanese is both a producer and a consumer.  But some of them are directly laborers, in this case, they have assets(real estate , bill that have value,… )that produce regular income they get without working or property that can make them living. And other some people invest their capital to increase their income. Some laborers not produce things or service directly but invest or finance money or are engaged in bank or the finance.

 Not only personal people do economic activity between they and enterprises but also the government use the system of tax or national debt and gather money and draft the national budget. Government and a local self-governing body distributes national budget to a public institution and economic activity to promotes increasing of profit and safeness of society. The bank of Japan save inflation and deflation from extraordinariness by policy of finance and do adjustment of interest to sustains the situation of economy smoothly.  

 A tax is used for mutual help or social security to reduce nation’s bear in those field that have high publicity, for example: education, medical treatment, nursing and welfare . And it is used for the police for peace preservation, action of national defense for national security, diplomacy… in a word, it is used variety field.

Second: derive.

The word “economy” comes from “οικονομία” in Greek. “οικος” means house,

“νομος” means a low or a custom. So the word “economy” originally means handle of things when we treat a family budget. But now, because “economy” treats matters of national reign, “economy” has a little different meaning.

The word economy in Japanese “ 経済 ”comes from China in tousin era.

Third: kinds of economy.

I will explain about three kind of economy( Traditional economy, Market economy, Planned economy) easily.

Traditional economy

Main economic activity( producing, distribution…) is provided by custom or tradition. For a tendency, it exist in relatively small group like village.

Market economy

Enterprise or individual produce things with the thought that individual profit is most important, things are distributed by system of market.

Planned economy

Central authorities manage all economic activity. In many case, this kind of economy is used in socialism. For example the era of Soviet, planned economy was used.

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