In applying the economy in one country, it seeks to answer five questions that are considered basic:
- ¿What goods to produce and how much of each of them?
- ¿How to produce?
- ¿for whom to produce?
- ¿How to achieve economic stability?
- ¿How to achieve economic growth?
Different economic models have emerged in order to solve the problems previously formulated, especially the last two questions. Over time they have been modified and in some cases combined, depending on the type of society that seeks to meet the diverse economic needs.
These economic models can be summarized in three:
Capitalism or free market:
It arises from the settling reasoning that economic laws are like natural laws and therefore should not be modified or altered, that is why they propose a minimum intervention of the State in economic matters and that depends more than all on an interaction between Families and the company. The law of supply and demand prevails. Generally the private means of production are many.
Socialism or planned economy:
It is the primitive idea that the State must control and direct the economy and therefore must have control of the means of production. He also believes that the economy is like a natural law but that it must be humanized, that is to say, to alter. The law of fair prices prevails. There are generally few private means of production in this system.
Keynesianism or Mixed economy:
This is an attempt to unite both economic models described above. However, there is a state planning in it, that makes it more socialist than free. He says that there are goods that must be managed by the State to guarantee the constant service to the citizens. The law of supply and demand prevails and the law of fair prices.
With the passage of time, some countries have chosen to plan their economy, which has brought them more problems than solutions since this unleashes corruption and abuse of power, usually the government becomes an authoritarian and deficient. However, there are others who have opted to limit the state's role in the country's economy. These countries have achieved stability and prosperity for a long time.
In Venezuela there is currently a planned or socialist economy. The size of the state is gigantic and this makes it both totalitarian and naturally inefficient. Prior to this economic model, there was a mixed economy, which, although it yielded good results, was not enough to achieve stability and gave rise to the current economic model.
For Venezuela to achieve prosperity and stability, it must restructure the state, reduce it, little by little, to the slightest level of intervention in the economy. The economic model to be aspired to is the free market. This will make Venezuela a world power, because it has many possibilities of entrepreneurship that will only be feasible in freedom.