Command Economy Research Paper

What is a market economy and what kind of government does it rule under? What is a command economy and does it rule under the government or is it more of a freedom economy? How are market and command economies similar and different? Command and market economies are different, but they have the same objective, which is keeping everyone happy and economically stable.

The most common type of economy in the world today is a mixed economy. However, each country must decide for itself what the best mix of features is from each of the three other types of economies: traditional, command, and market. Imagine that you are setting up a mixed economy for your own nation. Write an essay (minimum three paragraphs) describing what this economy would be like. What features would you use from each of the three types of economies, and why? Be sure to support your choices with reasons and examples

A catastrophic event has occurred and the world as we know is ending. Leaders, friends, family, gone. In order for the human race to survive, we must rebuild civilization. However in the event of rebuilding civilization, we must decide which economic system is most viable in this time.

The economic system I would not like to be under is traditional and command. The command economy is very controlling and slow in the simulation my group and I burly got any thing done. In the traditional economy our supply was the same as if we were in the command economy. Also when my group and I made paper planes simulation we had the traditional economy and to make a one plane was slow and just one big process and if our plane failed we had to destroy is and even in the process of destroying it can only be done one way . These two systems seemed wrong because they didn’t do anything new or different.

A command or planned economy is a system economy where everything about economy is controlled by the government. This means that the government determines what kinds of goods and services to be produced, using a method or manner of goods and services will be made up and who will consume those goods and services. So that, a command economy, it is easier for the government to control the inflation, unemployment and other economic problems. Command economy is benefit for the society because the government seeks to provide for everyone and it maximizes social welfare.

In contrast, the economy within societies based on tradition lies on procedures designed in the past and maintained by shared customs and beliefs which are extremely powerful (Helibroner 8). For a society based on commands, there is always an imposed authority or an economic command. The economic problems are solved according to the commander’s decisions (Helibroner 10). This is the very first time in human beings’ history that economy is run by markets, making the transformation to market society appear to be unprecedented (Polanyi 43).

In economy, societies have to make a choice of which system they will apply in their situation. These economic systems are chosen based off of how the society answers three economic questions. These three economic questions are: “What goods should be produced?” “How should they be produced?” And “From whom will it be produced?” Two of the most commonly seen systems in our world are command economies and market economies. Both which work in different ways and have different advantages and disadvantages that come with them. However only one of them can be better. In the following paragraphs, research done will show how both systems work, their advantages and disadvantages, and which system is better based off it.

Throughout history, countries have developed economic systems according to their political ideology. The nation’s ideology directly influences and becomes entrenched in economic decisions of the state. Whether a country develops a free market, a mixed, or a command economy, the foundation of the system lies in how to people choose to use and distribute resources.

The governmental structure of a country defines the type of economic system that may be utilized to increase their efficiency and prosperity. These different economic systems all answer the three basic questions. There is centralized command and control in which the government or dictator regulates every aspect of the economy from production types and quantity, to the consumers whom buy the products and at what cost. Instead of centralized command and control it should be commander in control, since one person or entity has all of the power over the economic system. Still, this type of economic systems exists in some communist/dictated countries today, such as, North Korea and Cuba. Another form of economic system is the price system, in which

In the centrally planned command system, gov’t owns all resources and answers the three economic questions. In the free market system, individuals own resources and answer the the three economic questions. In the mixed economy system, free markets exist alongside gov’t intervention.

Throughout history there have been many world powers rise and fall. Each has put into place an economic system by which the buying and selling of goods is regulated. Many smaller civilizations/groups live by the ideals of a traditional economy. Some governments have utilized more people friendly systems such as a free market or capitalism, whereas others have put into place systems like command economies. There are also many countries today who incorporate ideals from two economic systems to form a mixed economy.

The market economy is an economy in which most goods and services are produced and distributed through a free market (Merriam-Webster, 2009). This market is governed by the people and not the government. It gives freedom to the producers to create what is needed and wanted in a truthful manner, rather than what the government believes is needed and wanted.

Chapter 3 discusses the morality of the market system as a whole. The chapter examines several key components. The chapter discusses how market systems are justified, and explains the strengths and weaknesses of the various systems currently in use. Two concepts are discussed one says that the business system should be planned; the other that it should be a free market system. Further the chapter discusses the various arguments for and against free markets and government regulation as well as the possibility of a hybrid mixed economy system. Introduction to Business Systems begins by discussing Globalization has connected nations together to move goods, services, capital and knowledge freely “Free Markets/Free Trade”. All goods and services have to have a system that society uses to provide the goods and services. To accomplish the objective of moving goods there must the three devices of types of societies. Tradition based societies are when communal based. Command Economies are based on government decisions and finally market economies are where private companies make all decisions. Major arguments took place on whether economics systems should be based on commands or on markets and what roles government should play in deciding what are best. Free Markets became a big issue which basically says that individuals have the right

A free market economy and a command economy have their own advantages and disadvantages, however, currently China is in a Transition process; it is switching from Command economy to free market. So it might combine all benefits of both systems and due to this expose a unique rate of growth of the economy.

In a command economy, the role of individuals is fully controlled by the government so that the role of economic planning by the state in regulating the economy is so important. The role of the market as an allocation tool of economic resources was replaced by the way of endorsement or rationing because possession of economic assets is joint ownership in this command economy system. So the government can easily monitor the activities of the existing economy and facilitate the country can take full responsibility for the economic activities so that equal distribution of income among segments of society can be assured.