Command Economy
A command economy is an economic system which is very heavily controlled by the government. The government makes the decision concerning what, how, how much and for whom to produce. They control this by not allowing their people to start their own business and make any profit for themselves, other than their annual wages. They also have a central reward system out of which they set up stalls around the country to allow people to buy necessary items such as food, water and clothes. This can be a good idea as it allows control of all people and allows for an even price rate which could either be very high or very low depending on the country and national income. Particularly what they can afford to import and what they get from the goods they export. This can advantage the economy because many people believe that the government makes the best decisions for their country, their economy and for the future.
A command economy is an economic system which is very heavily controlled by the government. The government makes the decision concerning what, how, how much and for whom to produce. They control this by not allowing their people to start their own business and make any profit for themselves, other than their annual wages. They also have a central reward system out of which they set up stalls around the country to allow people to buy necessary items such as food, water and clothes. This can be a good idea as it allows control of all people and allows for an even price rate which could either be very high or very low depending on the country and national income. Particularly what they can afford to import and what they get from the goods they export. This can advantage the economy because many people believe that the government makes the best decisions for their country, their economy and for the future.
This image doesn't have China included in its list of command economies, but it is meant to be there.
A good example of a command economy today is the country of Cuba, located just east of North America. Cuba, whilst being very quiet the last few years has thrived and prospered very significantly. It is because that people are happy receiving equal wages and being independent. Although they are a quiet and seemingly insignificant country they are a very intelligent group of people. Just recently they have said that they may have found a cure for lung cancer. This proves that these people have been prospering all this time. This is a great example of how these types of economies help a nation to grow and to develop into a better nation, better people and most of all people who try hard at everything. Other examples of command economies include; North Korea, Turkmenistan, Myanmar(Burma), China, Belarus, Laos, Libya and Iran.