posted by Anonymous on .
Could I know the features of Command Economies/good and bad?
I think I found their relative advantages and disadvantages. Down below. Please check, and do tell me if there are more. Thanks so much.
Command Economy Advantages:
-Equality is focused on
-Government tries to get rid of private property and distribute its good equally. (If this is done in a proper way than no one is in poverty and no one is wealthier than another.
-Social services are also given importance to in this type of economy.
-The government will provide equal health care, education opportunities, and make sure that all people are fed.
-This type of economy is also capable of quick change for major problems.
-The government owns the companies, so if production needs to be shifted into a different area, the government is capable of doing it quick.
-These type of economies are also very stable. They will never have sudden depressions.
-Not that much freedom
-Individual does not have opportunity to decide what they want to do for a career, and they have no control over the goods they receive.
-There is little reason for innovations, hard work, or quality of the work.
-Individuals make same amount of money, no one makes more than the other, the people feel like there is no reason to work hard.
-There is little focus on consumer wants. When it comes to minor day-to-day changes, the government has a hard time dealing with with them.
Great! You've covered all of the pros and cons that I know about.
Note that communism is the major command economy. Yet the Soviet Union fell apart, although it's leaning toward a similar command economy system. It's having a hard time making the abrupt switch from a command economy to a free enterprise system. Both Vietnam and China have command economies, but they too have loosened up a lot in recent years and are adapting to mixed economies.
Thanks so much for the additional information:)
What does it mean by features? Is that same as disadvantages, and advantages.
Features means to describe them. I think you've done a good job of describing them in your lists of advantages and disadvantages. You could summarize the facts about a command economy and then go on to the advantages and disadvantages.
Thanks so much for your help, and thanks for the site as well:)
You're very welcome.