What is the best economic system?
A command economy is when the government controls every aspect of the economy. They have full control of pretty much everything that could be thought of. There is no private industry or consumer sovereignty. There is the government and only the government. The most common model is Communism.
Where were they among us?
The Soviet Union
Where are they among us?
Why they are the best
Mobilize economic resources quick, effectively, and on a large scale
Can create what is needed for a country much faster and more efficient.
Override individual self-interest for the welfare of the majority of the population
Set goals based on the whole society instead of parts of it.
The prices of every product is at a set amount, meaning that there will be no sway in the prices of products and they will stay consistent.
There is no classes, as the society as a whole is within one class, The Class. This means that there will be no poor and no rich.
Since the economy is based on the social needs, unemployment and not working is the lowest within a Communistic society as every will be given a job to better the country and society as a whole.
Everyone has the same rights, the same healthcare, education, and other public services. The government will provide for everything as long as you work to make the economy stronger.
With everyone working, the economy of the country is extremely strong and buff, as the economy becomes more unified and eventually stronger.
Red and gold are their colors. They are the best color and the only color, unless the government deems otherwise.
What are some flaws
Social wants are sometimes unthought of because the government is mostly think of the social needs.
People are put in jobs based on their skills, not because of their wants, which can slow down the economy.
Sometimes produce too much of one thing and not enough of another due to not know the consumer needs.
Prices are set, meaning their is no way to measure/control the demand of a product.
Little to no political/economic freedoms.
The governmental agencies have poor information on what the wants of the society is because the people don't have much of a say on what is going on.
There is no incentive for the people to work hard for, most of the time, people don't lose their jobs so they just do the bare minimum.
The economy supports a large bureaucracy, which means that decision making will be slow, the cost of production will be high, and there is no flexibility.
How to answer the 3 economic questions?
What is going to be produced?
It will be based on what the government believes the social needs of the people are at that moment. It will be regulated by the government and there will only be one type of each product as their are no private organizations making other products. Mainly, the government has a monopoly on every product and will make products base on what the government thinks the needs are.
How will it be produced?
It will be by what the government needs to produce. It is based on their divine authority. The government will only produce what is necessary at the most efficient way that is possible. This means that some products that the society might want might not be produced because it is not what the society needs based on the government.
For whom will it be produced?
It will be produced for every person within the society. There is no upper or middle class within a command economy, there is only THE CLASS. Which means that everyone is on equal ground and the government will provide for the needs of the society that the government feels to provide for. The government makes the produces for everyone within the society.
The theory of Communism may be summed up in one sentence: Abolish all private property.
- Karl Marx
The goal of Socialism is Communism.
- Vladimir Lenin
It is true that liberty is precious; so precious that it must be carefully rationed.
- Vladimir Lenin
When there is state there can be no freedom, but when there is freedom there will be no state.
- Vladimir Lenin