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A command economy is a system where the central government makes all economic decisions, determining what and how much goods to produce and their prices. It is characteristic of communist societies where the government owns all land and means of production. Key features include lack of competition and private sector, with the government controlling all business through a central economic plan that allocates all resources and priorities production. While it allows for rapid mobilization, command economies struggle with global market prices and innovation.
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my presentation in Economics with Taxation and Agrarian Reform
A command economy is a system where the central government makes all economic decisions, determining what and how much goods to produce and their prices. It is characteristic of communist societies where the government owns all land and means of production. Key features include lack of competition and private sector, with the government controlling all business through a central economic plan that allocates all resources and priorities production. While it allows for rapid mobilization, command economies struggle with global market prices and innovation.
A command economy is a system where the central government makes all economic decisions, determining what and how much goods to produce and their prices. It is characteristic of communist societies where the government owns all land and means of production. Key features include lack of competition and private sector, with the government controlling all business through a central economic plan that allocates all resources and priorities production. While it allows for rapid mobilization, command economies struggle with global market prices and innovation.
economic decisions. is a system where the government that determines what goods should be produced, how much should be produced and the price at which the goods are offered for sale. Command Economy
The government or a collective owns the land
and the means of production. It doesn't rely on the laws of supply and demand that operate in a market economy.
A key feature of any communist society.
Free-Market Economy Command Economy
the government does not
intervene in the workings there is no competition, as of the market by setting the central government prices, limiting production controls all business or hampering competition within the private sector 5 Characteristics 1. The government creates a central economic plan. 2. The government allocates all resources according to the central plan. 3. The central plan sets the priorities for the production of all goods and services. 4. The government owns monopoly businesses. 5. The government creates laws, regulations, and directives to enforce the central plan. Advantages Disadvantages Planned economies can Rapid mobilization often means quickly mobilize economic command economies mow down resources on a large scale. They can other societal needs. execute massive projects, create Struggle to produce the right industrial power, and meet social exports at global market prices. goals. Discourage innovation. Command economies can wholly transform societies to conform to the government's vision. SOCIALISM SOCIALISM a populist economic and political system in which the means of production operate under public political ownership, sometimes called common ownership. All legal production and distribution decisions are made by the ruling class.
All legal production and distribution decisions are
made by the ruling class. ORIGIN AND DEVELOPMENT
Socialism developed as an objection to liberal
individualism and capitalism. Under early capitalist economies during the 17th and 18th centuries, western European countries experienced compound economic growth and industrial production for the first time. Some individuals and families escaped poverty faster than others, creating income inequality and other social concerns. ORIGIN AND DEVELOPMENT
The most famous early socialist thinkers were
Robert Owen, Henri de Saint-Simon, Karl Marx and Vladimir Lenin. It was primarily Lenin who expounded on the ideas of earlier socialists and helped bring socialist planning to the national level after the Bolshevik Revolution in Russia during 1917. Breaking down Socialism
Prominent historical examples of socialist countries
include the Soviet Union and Nazi Germany. Today's examples include Cuba, Venezuela and China.
Due to its practical challenges and poor track record,
socialism is sometimes referred to as a utopian or post-scarcity system, although modern adherents believe it could work if only properly implemented. COMMUNISM COMMUNISM A political and economic ideology based on communal ownership and the absence of class. can be thought of as capitalism's opposite, says that in a capitalist society, the proletariat is exploited by the bourgeois. the proletariat - the class of wage earners, especially those who earn their living by manual labor or who are dependent for support on daily or casual employment the bourgeois - a member of the middle class; a person whose political, economic, and social opinions are believed to be determined mainly by concern for property values and conventional respectability. While based on a Utopian ideal of equality and abundance, as expressed by the popular slogan, "From each according to his ability, to each according to his need,communism in practice has only existed under authoritarian government and has been the source of millions of human rights violations and deaths. Breaking down Communism
One of the fundamental problems with communism is
the knowledge problem, which describes how, without a price system, central planners cannot accurately determine what goods and services should be produced or in what quantities. Useless surpluses and devastating shortages are the result.
Communism is often considered to be a twentieth
century political experiment that officially failed in the late 1980s and early 1990s with the fall of the Berlin Wall and the collapse of the Soviet Union.