Economic spectrum

A spectrum is often used to describe the relative positions of political and economic systems. A spectrum (e.g. 'right' to 'left') is used to define a system or view (e.g. society, government, political party, individual) in terms of its dominant position on control and change.

These terms are often not well defined, and lead to confusion, e.g. between economic and political spectra. Existing systems may incorporate some overlap, but essentially each of the spectra below define a different aspect of control in a political or economic system.

Economic Systems Spectrum

This spectrum defines where a system lies in terms of economic control (where economy is defined by the allocation of scarce resources).

Centrally Planned_________________________________________________Market

• Centrally planned (Socialism): Government (public) control of the economy.

• Market system (Capitalism): No government involvement (private control) of the economy.

Political Systems Spectrum

Main article: Political spectrum

This spectrum indicates where political control rests in a system and the extent to which the system is controlled by a single entity, that is government.

Anarchy______________________Democracy______________________Totalitarian

• Anarchy: no government, control begins and ends with individuals.

• Democracy: Government elected, and accountable to people. The majority rules while the minority's rights are protected.

• Totalitarian: Government exercises complete (or near-complete) control.

Rate of Change Spectrum

This spectrum gives an indication of how change is to be effected in an economic or political spectrum, whether it be fast or slow, immediate or long-term.

Radical_________Liberal_________Conservative_________Reactionary

• Radical: Complete, total and immediate change. The present situation is to be completely changed--NOW.

• Liberal: Willing to accept change. Evolutionary change as opposed to revolutionary.

• Conservative: Opposed to change. Prefers to maintain the status quo.

• Reactionary: Wants to return to a condition that existed in the past.

Note on linear model: As the two opposite ends of the spectrum are approached the more rapid and immediate the change advocated. For example, a reactionary is suggesting a revolutionary change in advocating a return to a system of the past(i.e. a complete change). Therefore a circle rather than a straight line might be more appropriate here.

Note on labels and definitions: Most reactionaries call themselves "conservative". Real conservatives are more likely to refer to themselves as "middle-roaders" or centrists. Liberals frequently refer to themselves as progressives. Radicals are more likely to call themselves radicals.

Ideological Spectrum

Ideology is the underlying belief system that dictates how a society functions. Every society has an ideology (even if this is not recognised).

Despite their labels, these terms should not be confused with their political and economic counterparts. These definitions are far more difficult to express.

Socialism__________________Liberalism__________________Conservatism

• Conservative Ideology: a society based upon inequality, i.e. one is born into a station in life, i.e., medieval Europe, Saudi Arabia, absolute monarchies, etc.

• Socialist Ideology: a society based upon complete equality for all: political, economic, social. This has never existed on a large scale. The USSR was actually a very conservative society.

• Liberal or Classical Liberal Ideology

1) Private ownership of property. 2) Individualism. 3) Competition and free market. 4) Limited government.

Liberal ideology preaches "equality of opportunity". However, a competitive society creates winners and losers. It is not possible for everyone to be a 'winner' in an economic competition. Therefore, poverty will exist in a liberal system.

Discussion

In a democracy the people (by way of the elected government) can have any kind of economic system they desire as long as it is achieved by democratic means. Therefore, it is possible to have a democratic political system and a centrally planned economic system or a democratic political system and a market economic system.

Extreme totalitarian political systems usually have centrally planned economic systems, economy being a significant element of society. Less totalitarian (authoritarian) systems may have something approaching a market system.

It is not true that a centrally planned economic system is to be equated with totalitarianism. To believe that equation is to ignore the fact that there are separate economic and political spectrums. Where a country is located on the economic spectrum does not dictate where it will be located on the political spectrum.

To have a rational discussion on the subject of spectrums be they economic, political, ideological, or rate of change, the participants should be cognizant of the above.