Mixed Command Economy Essay

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Compare the 2 different types of economies. (Mixed market economy of Canada & Mixed command economy of Soviet Union) Both Canada and Soviet Union were economically strong countries, while they have their different individual methods to develop their economies. Canada's economy is a mixed(modified) market economy which refers to a market largely but not solely determined by the Canadian consumers. Soviet Union's economy is a mixed command economy which refers to a market primarily determined by the government. This essay will explore the economies of Canada and Soviet Union from three different perspectives. Who determine what kind of products should be produced? In Canada, governments only provide the framework of laws and regulations within …show more content…

In Canada, the private companies choose how to produce the products. They try to produce products in the cheapest way so that they could earn the most money. The amount of the products from the companies is depend on the demands of the people. If the people need more, they will make more. It is the approach for businessmen to make more money and to not make too much products which the market cannot consume. Even if the estimate of the companies are wrong, only certain companies will be hurt by it. In Soviet Union, the five-year plans created by the government decide how much the amount of products will be made. The government set a certain product goal for each industry, and they do it without considering the demands of the markets. The government has too many things to organize, but it is not able to handle everything correctly. The industries want a higher efficiency, however, they trade it with bad quality of the products. Moreover, the estimate of the people's demands made by the government could be wrong. This leads to the problem of overproduction or shortages of certain items in the whole country. Who are the products for? In Canada, the private companies decide who they sell the products to. Some make expensive items which only a certain amount of people can afford it. Some make cheap items which everyone can afford. In Soviet Union, the workers and their families receive many goods and services from the state by working in the industries. Their basic wants and needs are satisfied. They receive the products which government they to

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