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Pure Command Economic Systems Essay

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In a pure command economic system, an individual person has little or possibly no influence over how the basic economic questions are answered. Nowadays, the only areas that still have a pure command economy are North Korea, Vietnam, and parts of China. Should these countries keep a pure command economic system? Or should the pure command economic system be taken away from these countries? The pure command economic must be taken away for three following reasons: It has no competition, no development, and no valued goods and services.

First, the pure command economy doesn't have competition because the command economy is one in which decisions about production; distribution and consumption are made mostly by the government. People do things for good of all society. Command economies are organized by the rules, and those rules are decided upon by a centralized authority. For example, the government decides what goods will be produced and how much will be made. It is impersonal; in that individual in the society probably don't know the individuals in the government who make decisions. In addition, the government controls all the companies and the businesses in the country because the government opens the companies and the businesses; no person is permitted to make his or her own businesses in the country. Furthermore, the government may consist of one person, a small group of leaders, or a group of central planners in a government agency; therefore, they can't refer together. The people who work in the companies and the businesses are only employees for the government; they don't have responsibility in work for competition to the other companies.

Second, the pure command economic system is economy that doesn't have dev...


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...em had been consistently relied upon." For this reason, after 1991, some countries in east Europe as Russia, Poland, Czechoslovakia, Hungary, and East Germany had to renounce pure command economic system and used mixed economic system for their counties, and these changes made their economy developed fast in recent years.

In conclusion, the pure command economic system causes disadvantages of economy for the countries in the world not only communist countries but also capitalist countries. It causes the economy of countries go down and promotes the people into poverty. It should be taken away from the world, for it has no competition, no development, and no valued goods and services. I think that if the pure command economic system are removed from the countries that are using it, the people will get out poor and starving life and have comfortable and peace life.


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