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Command Economics

Command Economic System

In the command economic system, a large part of the financial system is controlled by a central power. As in the USSR most decisions be made by the central govt. This type of economy is the core of the communist philosophy.
Since the govt. is such an important feature of the economy, it is often involved in everything starting from planning and ending in redistribution resources. The command economy is able to create a developed supply of its resources, and the rewards. This capability also means that the govt. usually owns all the important industries like utilities, aviation, and railroad.

Advantages of Command Economic Systems

  • If dead properly, the govt will mobilize resources on a huge scale. This quality will give jobs for nearly all of the voters.
  • The government will concentrate on the great of society instead of a person. This focus could lead to a lot of economical use of resources.

Disadvantages of Command Economic Systems

  • It is exhausting for central planners to supply for everyone’s desires. This challenge forces the govt to ration as a result of it cannot calculate demand since it sets costs.
  • There is a scarcity of innovation since there’s no ought to take any risk. staff is forced to pursue jobs the govt deems match.

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