A command economy is one in which the government is the chief agent in all major economic actions. The government goes as far as to determine what is to be made, how much is made, how it is distributed and how it is transformed into services the public can use. In many instances, even prices are set by the government.Know More
A command economy, also called a planned or centrally planned economy, is one where the government relays top-down directives to the sites of production and exchange. Some of the classic examples of command economies are communist economies, particularly the Marxist-Leninist model used in the former Soviet Union. A command economy is different from a market economy in that the presence of private enterprise and free-market forces are either extremely limited or completely nonexistent.
Proponents of command economies argue that this top-down model is instrumental in preventing abusive monopolies and risks to market stability. Furthermore, such government control is said to create possibilities for distributive justice, where everyone has access to the same grade and quantity of goods and services. Finally, proponents argue that command economies can better regulate the job market, thus preventing problematic levels of unemployment.
Opponents of command economies argue that central planning stifles creativity and limits the range of responses a society can apply reflexively to its own diverse needs. Additionally, opponents claim that in limiting individual and private industry, command economies generate significant impairments to free speech and, ultimately, to human rights. As command economies necessarily build bureaucracies, opponents also say that command economies inevitably become bogged down by distant functionaries and red tape that slow the system and cause it to atrophy.Learn more about Economics
Some of the advantages of a traditional economy include a stable marketplace and the preservation of culture and customs, but limiting the power of individual choice and minimal societal progress are clear disadvantages. Various cultures throughout the world maintain a traditional economy for generation after generation to sustain the society. A country’s refusal to adapt to modern ways of living impedes transformational progress for every citizen.Full Answer >
A national economy refers to the economy of an entire country. The national economy includes financial resources and management. It encompasses the value of all goods and services manufactured within a nation.Full Answer >
A mixed economy is comprised of private and publicly owned businesses that are regulated by governmental organizations. In mixed economies, such as the United States, the government is responsible for using laws to control or break up business monopolies.Full Answer >
The economic impact after the Civil War was devastating for the South and the North, because the war was extremely costly for both sides. It took decades for both sides to recover.Full Answer >