What Are The Advantages And Disadvantages Of Command Economy

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When I was young, I have wonder why we have rich country and poor country? I just think that because poor country doesn't have enough money and resource. But I start to realize that all country in the world have a same opportunity to grown. They just different in the economy system. Different system can lead to a big different. It's relative to competition, economic freedom, profit motive, ... Let take a closer look to see which economic system is the best. In this paper include advantage and disadvantage between command economy, market economy, traditional economy, mixed economy and compare which one is most beneficial, less beneficial.

Command economy system

Command economy is an economy in which decisions about production
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This economy give producer freedom to make their product freely. There is a lots different companies in market economy that give everyone a compete environment. This competition between different companies will increased efficiency. There is more innovation as the companies look for the product or cheaper way to do their work. With a huge advantage to make profit, many foreign investor will invest in. Unlike command economy workers, most market economy is working harder( the threat from losing job is a great motivation). But market economy still have disadvantage. As wealth get direct into what will earn large profit not what people need, some company was distorting investment priorities. This will lead to unused industrial capacity (the mountain of unsold goods has resulted in a large percentage of machinery of all kinds lying idle, while many pressing needs—but needs that the people who have them can't pay for—go unmet). From unused industrial capacity the unemployment rate will gown. In market economy, the inequality in economic and social is especially high. It's because the rich get richer and everyone else gets poorer. It will cause people with a lot of money begin to think of themselves as a better kind of human being and to view the poor with contempt, while the poor feel a mixture of hatred, envy and queasy respect for the rich. It also increase in …show more content…
This system is control by the government and private enterprises so it have all benefit of command economy and market economy. This system create much better way to make profit by giving producer specific product that consumer need so they won’t waste the resource. All the company is working well under government help. The social is get benefit because most of company will pay a little bit money to build social place. On the other mixed economy still have disadvantage of the other two systems. The inequality is still big, the rich still become wealthier when the poor is still poor. Sometime the government is getting weak by the wealthy people that to use money in political work (like Donald trump). Maybe the government and producer work together to create profit for themselves by illegal

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