Definition of Economic System

According Dumairy (1966), The economic system is a system that regulates and economic relationships between people with a set of institutions in an order of life, then it says also that an economic system does not have to stand alone, but relates to philosophy, outlook and lifestyle of the community in which stand.Various kinds of economic systems• the traditional economic systemTraditional economic system is an economic system imposed by traditional society for generations, relying on nature and labor.Characteristics:- There is no division of labor- The exchange of the barter- Types of production in accordance with the requirements- Soil as a source of life and prosperity- Characteristically family• The economic system of commandSystem of command economy is an economic system in which the role of government is very dominant and influential in controlling the economy.Characteristics:- All means of production controlled by the state- Economic policy is set by the state- The government regulates the production, distribution and consumption- Under-recognized private property rights• The system of market economySystem of market economy is an economic system in which the activities of production, consumption and distribution is done by private parties.Characteristics:- The factors of production owned by the public (private)- Price is determined by the market mechanism- The role of capital is critical- Based on individual freedom- Creativity is not limited to individual- Every economic activity is based on earnings• System of a mixed economySystem of mixed economy is an economic system in which government and private (community) interact in solving economic problems.Characteristics:- Individual property rights are the factors of production are recognized, but there are restrictions from the government- Freedom for individuals to try to stay there so that every individual has the right to develop their creativity in accordance with its capabilities- Public interest is preferred- Government intervention in the economy just about the factors that dominate the life of the people• The economic system fascismFascism is an economic system that puts people understand themselves and contempt for other nations, in other words, fascism is an attitude of excessive rationalism.
Each state has an economic system. Profess that each State System is the result of the country's national agreement. Usually based on a proper system of law of that State-owned.In the sense of a system of Economics adalahstrategi State to regulate economic life in order to prosper his people.Economic systems are generally in common use (particularly in Indonesia:a. Free market economic systemFree market economic system is the regulation of economic life left to market mechanisms.b. Centrally planned economic systemSystem of central planning economy is an economy setting is governed directly by the State.c. Mixed Economic SystemMixed economic system is managed by setting the private economy and government.d. Islamic Economicsis a social science that studies the economic problems of the people who dilhami by Islamic values. Islamic economics or cooperative economic system different from capitalism, socialism, and the welfare state (Welfare State). Islam is different from capitalism as opposed to exploitation by capitalists to poor workers, and prohibits the accumulation of wealth. In addition, the glass eyes of Islamic economics is the demands of life as well as the suggestion that has a dimension of worship.