Topic > Command System Weaknesses - 1024

The command system, also known as communism/socialism, causes the government to own most of the real estate and decisions are made according to a central plan. This central plan makes decisions about the use of resources, the formation and distribution of production, and the organization of production. “The plan is implemented through laws, regulations and directives. Businesses follow production and hiring goals and seek to replace the forces that operate in a free market economy.” (Amadeo 1) Public ownership of goods exists. This system also incorporates individual choices that are reflected in central planning. There are many limitations that cause a problem in some way. Defining characteristics of the command system include government ownership. The central authority makes decisions as resources are limited but choices are made at the government level not individually and make trade-offs, the government determines the prices which determine who can buy, the government owns the resources, it decides what is produced, the method of production, control incentives and their use, and buyers and sellers exchange goods and services through the determination of government-controlled markets. Government basically addresses all the fundamental economic questions of what to produce, how to produce, and who gets what. Since this system is completely chasing the government is the reason why this system has not been so successful as to push countries to abandon it and move to a free market or mixed economy. It's a great system in terms of security, but what it lacks is efficiency, growth and freedom. The free market system, also known as capitalism, is based on supply and demand with minimal oversight. ......both systems worked together, then it might work for the country because if you think about it they are like missing pieces of a puzzle, one may work for the other but nobody knows, and no country exemplifies a pure form of these economic systems, but this is only a hypothesis. Many economies in recent times have developed into the mixed economy because they do not necessarily classify themselves as part of the free market system or command system. Although many countries are said to have adopted one or the other of the two systems, in reality they have adopted a little of each system because in a mixed system, this includes both the side of economic freedom and that of government regulation. And it seems to have worked as the system has been supported by some politicians who see the mixed economy as a compromise between classical socialism and pure capitalism..