Pros And Cons Of Command Economic System

This type of economy works in the private sector of business ie. Individual firms. A command economy is an entirely different system in which a central government decides how to answer the three central economic questions. The government would decide what is to be produced, how it is to be priced etc.

Free-market and Command economy are the two-major economy system. It has sparked years of controversies among individuals over which system is better. However, no agreement has been reached. Meanwhile, it is obvious that free-market economy predominates all around the world as the majority of countries are following an economy which free-market process the dominating position.

Nations have debated on which economic direction their country will direct its footsteps since the creation of societies. The United States, being one of the most stereotypical capitalistic nations, began as a Laissez-faire nation, but throughout the centuries America’s economic standpoint has shifted more into Socialism rather than Laissez-faire. The second largest economy in the world, China, is widely understood as being a socialist country, however, for the past years they have been inclined towards a more capitalist nation, but are still officially socialist. Socialism and Laissez-faire both have fatal flaws, but both concepts can be blended and pragmatic to the new millennium while having a positive future.

The free enterprise system uses a thing called gross domestic product, which is the value of all goods and services produced in a country in a given year. When value comes into play it is based on the utility, which is the usefulness of the product and the scarcity, which is the limited availability of it. Value today is not what it used to be like many years ago. People are not realizing it, but there is a big problem that is only going to get worst. Which is that the people's wants are unlimited while material is scarce.

The government also makes all main economic choices. Places like China have a command economy, and command economies grant hardly any freedom to people, as the government is very harsh on society. Everything is controlled by a central power. Although command economies are strict, they adapt to change well, thus that being a major advantage. There is very little uncertainty with where to work because their lives are already basically planned out. In a command economy it is very easy to make your own business, as in a market economy it could end up taking weeks, months, or even years just to get started. Also, in a command economy since it is so strict families are limited to have maybe one child, and soon the family will depend on that child when they are no longer able to work – making the child responsible for a lot of things in the family. Command economies are not poor, because there is always production and its very rare that a worker would be able to call

People have been debating the structure of the governments and the economic systems during centuries. These arguments began with the publication of The Wealth of Nations by Adam Smith in 1776. He discusses the basic principles of "Capitalism  in his book. However, in 1848, a new idea called "Communism  comes up with The Communist Manifesto written by Karl Marx. These two ideas seem to be opposite, in fact, they differ in many ways; however, they also have something in common. In this essay, first of all, I will analyze these two texts to find out the differences and similarities between the ideas of Karl Marx and Adam Smith. Then, I will move on to the effects of these two men's ideas on today's governments and

Economic systems are organized way in which a state or nation allocates its resources and apportions goods and services in the national community. An economic system is slackly defined as country’s plan for its services, goods produced, and the exact way in which its economic plan is carried out. There are three types of economic systems exist, they are command economy, market economy, and mixed economy. Command economy is also sometimes called planned economy. The expectations of this type of economy is that all major decisions that related to the construction or production, distribution, commodity and service prices are all made by the government. However, in market economy, national and state governments play a

Command economies and market economies are two different economies and both effect a workers life and I will explain how they both effect a workers life. The first example I will start with is how command economy affects a worker's life and the my first example of how a worker is affectebyes he or she can not pick the job they want to work at and that has lots of effects on a workers life. One example would be that a worker does not get to pick there job so there for he does not get to pick the salery they get and when they get a low salery his or her family can become very poor. So the worker can suffer there whole life because the government picks what job you have. On the other hand market ecomony could affect a workers life too. One example

Command Economy is one of the few types of economic systems that are used worldwide. For this, the government controls the economy and may even determine what sorts of work individuals do. This type of economy tends to develop when a country finds itself possessing a large amount of valuable resources. The government then regulates the resources, usually they will own everything involved in the industrial process. Some advantages would be that the

In a command economic system or communist, the government promotes the ideology of social cohesion in which all people are viewed as equal regardless of their status or educational background. Everyone within the system is given the same equal share of opportunities. On top of that, the government owns everything such as the businesses and industrial productions where they have total control of the distribution. The government provides its citizens the opportunities within the work force to supply for their families by contributing their part in the work to benefit the profits while at the same the citizens may suffer sanctions if they should fail to contribute on their part in which it produces an overall direct benefit for the whole society.

Throughout history, the world has seen the emergence of different economic systems, inspired by some of the brightest minds in the economic field. However, not all economic systems functioned as depicted by their creators, and ended up failing. In this paper, I am going to analyze how every economic system failed or succeeded in a particular set of countries, according to the criterion used and explained in the previous paper. To do this, I am going to explain the history of the countries involved and how each system got implemented. I am also going to take into consideration the different measures of the criteria for assessing economic systems to collect data of the countries analyzed in order to determine if those countries had successful economic systems. I am going to look for cases in which certain parts of the system failed and others in which it can be agreed that it succeeded, and I will explain why, using the information I collected. It is my objective to discover what particular characteristics made each country have a successful economic system, and what differences they have compared to other not so successful nation-states. It is worth mentioning that there is no perfect system, and that the purpose of this paper is to show cases of countries in which a specific ideology caused an either positive or negative result in the economy, polity or society.

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).

There are three main economies in the world today, market economies, traditional economies, and command economies. Comparing these three economies shows the major differences between them. Each one has its own advantages and disadvantages. They all have different ideas about who controls and owns all resources. They all have very good ideas and maybe some areas that need

For many nations, it is essential to choose a system of organization that successfully and thoroughly meets the needs of all the people. While some countries have supported the idea of communism and strong government intervention in the economy, others have limited the role and power of their governing body in the marketplace. For instance, in the United States, the government has a small role in the planning and monitoring of their economy. Individuals compete heavily against one another to receive the maximum profit for themselves in an sufficient manner. The former USSR, on the other hand, used large amounts of government control to restrict competition and control the output and distribution of the goods

Different nation and states utilize unique economic philosophies to manage how limited resources are allocated within their societies. The two most common of these are capitalism and socialism. Even among these two prevailing schools of economic thought, which systems is emphasized can vary from country to country. The United States has always favored strong forms of capitalism since its inception, while China, the Eastern Bloc nations, and the former USSR have experimented with extreme forms of socialism in their recent history. Western Europe, while favoring capitalism, has implemented many socialistic policies to achieve a middle ground between the two. Within said nations, citizens often directly align their preference of economic thought to a blind patriotism to his or her native land’s policies, without a cogent understanding of how such policies work or don’t work. Such dogmatism can be mitigated by under taking a careful examination of both systems’ pros and cons.