By Trevor Raylean
Examples of Command Economies
Countries that use/have used Command Economies: Nazi Germany, countries within the United Soviet Socialist Republics, North Korea, Maoist China
Styles of Government that utilize Command Economies are Socialist and Communist nations.
Command Economies seek to:
Provide for all citizens, regardless of disability
Leaders can force production of goods that are not generally profitable, such as medicines
However, the disadvantages of Command Economies:
Planners with little understanding of conditions on far-reaches of the country can make problems worse
Workers have little to no motive to increase productivity
Frequent shortages of needs
Policies are inherently flawed, causing multitudes of deaths; more than the combat casualties of both world wars combined.
Three Economic Questions
What is to be produced?
What will be determined to be put into production is based off of the needs of the people, not their ancillary wants. As such, production is geared towards things that will keep the State, and its people, afloat. In a Command Economy there is no need for extravagant pieces of leisure, but instead production must be geared towards increasing the longevity of the state.
How are the goods to be produced?
The goods will be produced on land owned by the State at the expense of the State. Typically, a nation would be split into different "sectors" geared towards producing different things, so farming would be handled in one area of the country whilst industry would be tackled in another. Labor is readily available, and all laborers are paid a flat rate for all.
For whom are the goods produced?
The goods are produced for the State, as it ultimately is in control of the citizens within its borders. These produced goods would then be allocated to different regions based off of their needs, and dealt with in those regions. For instance, if the State produced a large quantity of rice, but City A is agrarian and already has access to rice; they will ship the quantity to City B (which is industrialized).