The Downfall Of Command Economy Countries
In the world today, command economy countries, otherwise known as planned economy countries, are very rare. A command economy country is one in which the economic system is controlled by a centralized federal government. That government assumes power over the entire population.
In this type of economy, the government has total control over the production of goods, the finalized products as well as their prices, and the revenue earned from the distribution of those goods. It controls the distribution of jobs, health care, and wealth, ensuring that each individual is provided for equally and has what is needed.
The overall idea in a planned economy is to be positive that the people living in it have a sufficient supply of goods. It also ensures that the prices of industrial products are reasonable for the manufacturers as well as the general population. In doing this, balance within the economy is maintained, jobs in the industrial production sector of the job market are guaranteed, and preserve quality standards that the government requires.
Countries operating under a command economic structure support the idea that this type of planned structure maintains an efficient use of resources. By controlling the rate of production, the government is able to eliminate a supply of finished goods that exceeds the demand of those goods. Products, therefore, do not sit on the shelves of stores becoming obsolete after the demand for them is gone. As a result, the manufacturers do not suffer a loss by selling goods at a price lower than it cost to produce them.
In theory, the idea of operating under a planned economic plan sounds beneficial. It considers the welfare of the economy as a whole rather than as individual companies, or individual people. It focuses on equality in the population as a whole. The government provides equal health care, equal education and job opportunities, equal work wages, makes sure everyone has food, and ensures no one is in poverty as well as ensuring no one person is richer than another. Command economies are also very stable and lack any threat of inflation or sudden recession.
There are many reasons, though, why the command economy model has not been the dominant structure used in countries around the world. Although it may sound good in theory, this type of economic system, just like any other system, is flawed. It does not provide any motivation for growth among the population.
In a planned economic structure, individuals have very little freedom. There is no opportunity to choose a job or career path because it is designated to the individual by the government. People do not have any control over the products or goods they receive. In this type of economic model, no person is poorer than another, just as no person is richer than another. Because each person receives the same income, there is very little motivation to work hard or focus on the quality of work. There are no opportunities for advancements, bonuses, or promotions so there is no incentive to do a good job.
In countries like the United States, a command economy would never flourish. This type of economy places barriers on the freedom of the individual, and anything that puts restraints on the freedom of a person will not last. There are very few countries left in the world today that use this model of economy, because governments should not be to control the people, but rather be comprised of the people, and for the people, and by the people.
Command Economy Countries are those where production is public property and a quota system controlled from the top which determines both production levels and the distribution of produced goods. To learn more about Command Economy Countries, visit our site to read on.
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