Command Economic System

Decent Essays
There are different types of economies, but the most common economic systems today are market and command economy. Command economy is where there is a central authority that is basically in charge of the what, how, and for whom decisions. All of the economic decisions are made by the government. If the people make any type of decision in the economy then there is barely any influence over how the basic economic questions are answered. In the market economic system, the people and firms act in their own best interests to answer the what, how, and for who questions. The system is arranged that allow buyers and sellers to come together in order to exchange goods and services. The people are basically the center of the decision making; they are what…show more content…
Now, someone who lives in honk Kong can start a business up in a few hours. This allows the people of the country to make a lot of money because they won’t have to work for someone, they will be in charge of what they produce and what they sell to be successful in their companies. The way the government of Hong Kong never goes bankrupt is they charge 15% on taxes. For most of the people that’s a lot of money being taken away but for people who take risks and chase their dreams, this won’t be a problem. The same goes for the Unites States, they are risk takes.
America is not even the biggest country in the world but it produces the most goods and services. This is because the U.S government is not care takers, they will let the people do what they want and be successful in their businesses. America is always open for new ideas. That is why America will remain number one. Both socialism and capitalism can be debated which one is the best or which system operates better. The point is that one lets you take risk and another will always have the answers there for you. Both can benefit you but one will pay off more in the end if you take risk and
Get Access