Command Economy Vs Capitalism

America is known as one of the great countries in the world based on the economic system in which maintains the outstanding nation. The market economy of capitalism took control in the early 1900’s as it started to flourish and the people gained control over their money. Many large countries thrive off of the capitalist system, as it proves a spacious amount to grow and produce revenue. The opposite type of economic system is the command economy of socialism. Large nations, such as India and France, practice this type of economy while the government controls the majority of decisions. Many advantages and disadvantages come with each type of economic system. Capitalism, defined as “an economic system in which investment in and ownership of the means of production, distribution, and exchange of wealth is made and maintained chiefly by private individuals or corporations”, maintains a risky system. Socialism, defined as, “system of social organization that advocates the vesting of the ownership and control of the means of production and distribution, of capital, land, etc., in the community as a whole”, maintains a stable, but less beneficial system.
The market economy of capitalism is controlled by the people, with little …show more content…
France and India maintain a strong economy while their government controls every aspect of life. The poverty rates, unemployment rates, and difficulty to start a new business is a main problem for a socialist economy. Socialism does help with maintaining the greed for most people, free healthcare, and free education. Although, taxing is at an all time high to support all of the “free” programs. Socialism and communism are very similar in those ways. Communism is the highest on the scale for government control; they have the authority to control all money and decisions made by the common people. The failure rate of socialist economies is higher than any other type of