by Valerie Ochoa
The command economy is a key feature of any communist society. China, Cuba, North Korea and the former Soviet Union are examples of some countries that have command economies.
Advantages and Disadvantages
An advantage of having a command economy is that resources are more quickly distributed on a large scale while at the same time a production rate can be set to meet the exact demands of society. This allows for less chances of a shortage occurring. Also, when it comes to businesses in command economies their primary goal is no longer self gain but instead the success of the economy.
Some disadvantages are that the needs of society might be often left uncared for because there is more focus on the economy instead of society. Also the black market thrives much more in command economies because of all the government restrictions. There may also be failure in coordination that may lead to shortages.
In a command economy the government will own all or most of the industries in the country for producing goods and services. Production is decided by government agencies who decide which goods to produce and can even set prices and rations for customers.