The 7 Types of Economies
Stage1: Total Individual Control
Individuals control what is produced, and how, and who gets it.
Stage 2: Night Watchman
State Government provides police protection to avoid theft, enforce private Contracts assure property rights, provide national defense.
Stage 3: Night Watchman, Plus
Provides some public services, the roads, fire protection, education, science.
Stage 4: Stage 3, Plus
Provides certain programs like retirement and health care.
Stage 5: Stage 4, Plus
Starts running Industry like steel, cars agriculture, distribution of basic consumer goods like food and housing.
Stage 6: Stage 5 Plus
handing out all housing, food, telling firms what to do, setting all prices.
Stage 7: total Government Control
Government controls what is produced, now and how, and who gets it.
