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An economic ideology discerns itself from a pure economic theory because it is normative rather than just explanatory in its approach. It describes the way an economy should be run and to what end, whereas the only aim of economic theories is to create accurate descriptive models. However the two are closely interrelated. A good way of discerning whether an ideology can be classified an economic ideology is to query if it inherently takes a specific and detailed economic standpoint. For instance, Anarchism cannot be said to be an economic ideology as such, because it has amongst others Anarcho-capitalism on the one hand and Anarcho-communism on the other as subcatagories thereof, which in turn can. Furthermore, economic ideologies can be said to be a distinct subset of economic systems, because of the ideological element which is not part of economic systems per se.

Examples

• Capitalism

These days the term market economy is preferred to capitalism by many exactly because it is stripped of ideological connotations, these do actually often remain implicitly present. When contrasted with other ideologies however, they become more clear.

In Capitalism, most non-basic and basic businesses are privately owned. Sometimes by individuals, sometimes by huge, powerful companies. Workers produce the goods and\or services, but are not paid for their production, but are paid according to what the owner of the factory feels is right. The company earns money when it sells a product, in theory the consumer doesn\'t have to buy it. (of course: a consumer can choose not to eat bread, but not all can afford cookies.) What the wages are are determined by the supply and demand of the markets - and not by needs or welfare of the workers. How the profits are used are determined by the owner(s).

• Socialism

In Socialism, key industries are owned by the government. It runs not for profit, but for the purported good of society. Other industries and services are privately owned. The government might determine what the wages are and what the price for each product is. Any money gained is used to pay for health and education services.

• Communism

Communism is perhaps the best known economic ideology, and is labeled as such because its central tenets explicitly dictate the way it believes society ought to structure its economy, namely by being based upon common ownership and means of production.

In Communism, all basic and non-basic industries are owned by the people. There might be a government, but it is not necessary. Money isn\'t necessary either.

• Socialization

The term of socialization is a doctrine created by the economic fascism and, in the intentions of its proponents, would have been the "third way" as opposed to the two major economic systems of the twentieth century, capitalism and communism both as regards the economy is on its reflections on the social consequence.

The basis of socialization is the total absence of employees, or any entity productive belong equally to all its employees, no longer masters nor employees. This unlike capitalism, where production is an entity owned by a person or a society of people also unconnected to production, while production is entrusted to employees. And unlike communism, where the property is replaced "by the state" and is managed by administrators appointment political. Similarly to capitalism, the theory socializationist provides for the right to private property, freedom of economic initiative, respect for the law "demand-offert" and free competition.

See Also

• Economic system
• Political economy
• Ecological Economics
• Development economics

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