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... ... middle of paper ... ...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.
and is still present in today’s society. When the Soviet Union had collapsed, Eastern Europe did
Economic systems are affected by the two opposing systems of Capitalism and Communism. They each can meet the needs of people; however, both affect the lives of people in good and bad ways, affecting industrialized nations and nations in the process of being industrialized.
Living in a centrally planned or command economy would be a strange experience indeed, as I have lived in a nation that employs a free market economic status for all of my life. It would take quite some time for me to become accustomed to having most if not all aspects of my economic life wholly presided over by the government. Though it is true that most financial decisions that pertain to me are still made by my parents, I like to think that living in a free market economy benefits me even as a young person, and I would regret having to relinquish such benefits. Thus, I can easily see how there would be more disadvantages to a command economy than advantages, especially for a person who values freedom. I can, however, notice that there are certain aspects of life in a command economy that I may like. In consideration of such things, if I lived in a centrally planned or command economy, one of the things that I would like would be the fact that I could be assured of having a job and a salary so long as I am capable of work. I would like having the security of knowing that I would not have to worry with the possibility of not having the money necessary for living; that is, at least until the government decides that I am expendable. Most especially in the current world, occupations can prove difficult to obtain and maintain, even for those who have a background of experience and education that makes them more qualified than others for a particular job. It is a worry of mine and my siblings that we will not be able to procure dependable jobs after we have finished our college education, so it would be reassuring to know that I would be mostly guaranteed of a job, albeit one that is specified and proctored by the government. I have k...
While comparing these two economies, command and market along with capitalism and Socialism, I have learned to differentiate between the two. The command economies tend to lower overall freedom but focus on giving the basic needs of the people. While the market economies focus on the best way to create goods and services and give the people more freedom. These are the two most common economies in the world and it is surprising that both are able to work so well. There are instances where some people are irritated by some regulations put into their economies, but they manage to keep going on and not lose total order.
Communism can be regarded as a social system in which property is owned by the community and each member works for the common benefit. Such an ideal where the community as a whole works for equal benefit may seem to paint the perfect picture at first but this theory becomes tainted. The Communist Manifesto proclaims, “Communism deprives no man of the power to appropriate the products of society; all that it does is to deprive him of the power to subjugate the labor of others by means of such appropriations” (Marx 12). What communism lacks, due to ignorance by its perfect picture, is the aspect of proper management to further a country’s prestige. And what happens when you have management via dictatorship? There usually lurks the abuse of power and later the overthrow of a power by civil war or international powers. What communism lacks that democracy fosters is the virtue of progress that allows a nation to rise above and endure times of hostility.
...free enterprise system is very important in today’s society. Because of the capitalistic economy people have incentives to work harder and longer and maybe entice people into starting businesses that would not have been there succeed. The law of supply and demand is a great idea for the free enterprise system because it helps producers and consumers come to an agreement on a products cost. The free enterprise system also helps companies keep striving to become efficient and to produce things cheaper so that the public can get products for cheaper. The capitalistic economy makes a way for companies to change with society in a way that businesses are happy because their sales are improved and consumers are happier because they get the products they want. The free enterprise system is the engine that drives the United States economy and continues to work to this day.
Throughout history, there have been many systems developed in order to have a better society. Two of the most analyzed, and debated systems that have tired to change an economy for the best are communism, and capitalism. Communism, and capitalism have been compared on many levels, such as why they will or will not work, and which one works better. Throughout this essay I will concentrate on the differences, and similarities of how each operates, along with the benefits, and problems that each of them produces.
The Soviet Union was a communist state before it fell apart in the early 1990’s. Communist political economy shaped the direction of the nation’s industrial development. Industrialization contributed to increases in Soviet wealth, but only for those favored by the communist regime. Working Soviets were left poor. This form of communism came to be because of the Russian Revolution and was based on the idea that all people are equal. While being a great idea in theory, it did not work out in the real world. Soviet-style industrialization was about earning money quickly and in an efficient manner, the officials implemented the idea that “everyone should be the master in his own house”, and they achieved great power and money.
The first key reason why the united states should use capitalism is because of the the innovations that came out of the Industrial Revolution. These innovations include the Light Bulb, AC Electricity, and the Telephone. Without the Light Bulb or coarse we would still have to be using
What effect would it have on the environment and long-term sustainable development if businesses were to provide services, such as illumination, instead of selling products, such as light bulbs? This concept, referred to as the economy of service and flow, constitutes one of the basic principles of natural capitalism as expressed by Paul Hawken, Amory Lovins and L. Hunter Lovins in their book "Natural Capitalism: Creating the Next Industrial Revolution". The idea is to take advantage of cost efficiencies, align the interests of businesses and their customers, and remove waste from the system.
Today, more than ever, there is great debate over politics and which economic system works the best. How needs and wants should be allocated, and who should do the allocating, is one of the most highly debated topics in our current society. Be it communist dictators defending a command economy, free market conservatives defending a market economy, or European liberals defending socialism, everyone has an opinion. While all systems have flaws and merits, it must be decided which system is the best for all citizens. When looking at both the financial well being of all citizens, it is clear that market economies fall short on ensuring that the basic needs of all citizens are met. If one looks at liberty and individual freedom, it is evident that command economies tend to oppress their citizens. Therefore, socialism, which allows for basic needs to be met and personal freedoms to be upheld, is the best economic system for all of a country’s citizens.
One of the best ways to end the capitalism-communism debate is by testing the two systems practically in real life uses. For example, USA and Germany are two economic superpowers that use capitalist based economy; USA has the best economy in the world and the highest GDP ($15.68 trillion) in the world while Germany is ranked the fourth country in highest GDP (3.4 trillion). China and North Korea are two commun...
Capitalism is currently one of the two major economic systems that are being operated among the world. For my interpretation, its basics are privatization and individualism. That is, capitals are privately owned, profit of production is also privatized, and the society exists more on the basis of individuals than of groups. From an economic aspect, we undoubtedly acknowledge that capitalism is making great progress and wealth. As an example, the most powerful country in our time, the United States is a typical capitalist country. Yet, we also cannot deny that this system is causing problems and they are gradually getting widely concerned. Therefore, this controversial issue is often brought into public focus. The question is, is capitalism actually good to keep or it is evil to be replaced?
... everyone to agree on such a leadership. There would be a challenge trying to convince everyone to be equal. For example, doctors getting paid the same as a garbage man. Pure Communism I think could be achieved with some exceptions though. I believe that some of the third world countries, or countries such as Mexico, and India would probably work out fine. Because of such low wages and mostly bad economy, if they were to resort to Pure Communism, it would, I think benefit them. They no longer will have to worry about discrimination on the basis of economic class. On the other hand, I believe that the United States will never convert to such a regime. The reason being that money talk, and to most people here in America, their world revolves around money. For them to give up their resources and be equal like everyone else, would mean there is no longer a reason to live.
All in all, the statement shows that market economy is clearly the most important effective economic system because of the freedom for making decisions. Furthermore, some of the countries that are using totally command economy are moving towards mixed economy and the countries that are using mixed economy are step towards market economy.