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 Availability of Suitable Labour
the need for workers who are healthy and adequately trained
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