Modern economic systems

The economic systems of the modern world draw extensively on the ideas and philosophies of the great economists. From Smith, we see the widespread use of markets and the tendency to allow firms to compete and to make major economic decisions for society based on the profit motive. From Marx and Veblen, we see the need to check the unfettered power of large firms and to safeguard workers and communities from exploitation. From Hayek and Smith, we see the need to check the coercive power of the state to prevent it from becoming too powerful and bureaucratic. From Keynes, we see the approach that dominates modern economic systems: The construction of a mixed economy which builds on the best aspects of market capitalism while regulating market failures is likely to deliver the best outcomes.