Characteristics of a command economy (also known as a centrally-planned economy) (also by Investopedia)
1. A system where the government, rather than the free market, determines what goods should be produced, how much should be produced and the price at which the goods will be offered for sale
Strengths of the economy
1. equal distribution of wealth
2. very stable
3. equal health care, education opportunities, and distribution of food
Weaknesses of the economy
1. hardly any incentive and innovation due to set wages
2. lack of freedom
3. lack of profit
4. no competition
5. lower standard of living when compared to a free market economy
Site where I got the pros of a command economy (ignore the rest):
"This crippling of individuals I consider the worst evil of capitalism. Our whole educational system suffers from this evil. An exaggerated competitive attitude is inculcated into the student, who is trained to worship acquisitive success as a preparation for his future. I am convinced there is only one way to eliminate these grave evils, namely through the establishment of a socialist economy, accompanied by an educational system which would be oriented toward social goals." |
