Command Economy

Examples of Command Economy in the following topics:

• Economic Systems

  • These are classified as markets, command, and tradition.
  • Markets and command exist in traditional economies.
  • Tradition and markets exist in command economies.
  • Western industrial societies categorized as "market-oriented" economies rely primarily on exchange, but contain elements of tradition and command.
  • Command is also found in market economies as regulations and laws regarding the allocation or resources and goods.

• The Communist Economic System

  • The former USSR (or Soviet Union) is the typical example of a communistic, command economy.
  • Today, China is seen to be more of an authoritarian capitalist rather than communistic command economy.
  • An economy characterized by Command Planning is notable for several distinguishing features:
  • Often a currency does not exist in a command planning economy and when it does, its main purpose is for accounting.
  • Explain how a communist economic system is representative of a command planned economy

• Socialism and Planned Economies

  • A planned economy is a type of economy consisting of a mixture of public ownership of the means of production and the coordination of production and distribution through state planning.
  • Economic planning in socialism takes a different form than economic planning in capitalist mixed economies.
  • Enrico Barone provided a comprehensive theoretical framework for a planned socialist economy.
  • The command economy is distinguished from economic planning.
  • Most notably, a command economy is associated with bureaucratic collectivism, state capitalism, or state socialism.

• The Role of the Financial System

  • An economy that relies primarily on interactions between buyers and sellers to allocate resources is known as a market economy, in contrast either to a command economy or to a non-market economy such as a gift economy.
  • Financial markets are associated with the accelerated growth of an economy.

• Differences Between Centrally Planned and Market Economies

  • The key difference between centrally planned and market economies is the degree of individual autonomy.
  • Before you can analyze any national economy, you need to understand these two opposing viewpoints on how to run an economy.
  • These economies are also called command economies because everyone must follow specific guidelines set up by the controlling authority.
  • Planned economies have several advantages.
  • Although they avoid many of the inadequacies of planned economies, market economies are not free of their own problems and downfalls.

• Economic Decisions

  • In a simple taxonomy, individual behavior may be influenced by rules (command), intuition, emotion, habit, reason or some combination.
  • There is no reason to believe that a traditional economy, a planned economy and a market economy would make the same allocation of resources and goods.
  • These economies may have different objectives.
  • In the Socialist Calculation Debate, Austrians argued that command economies could not be successful because there was insufficient information to guide decisions in the economic process.
  • The Austrians argued that the command system had no process by which information would be revealed.

• The Theme System

  • The soldiers were still technically a military unit, under the command of a strategos, and they did not own the land they worked as it was still controlled by the state.
  • The commander of a theme, however, did not only command his soldiers.
  • Thus the division set up by Diocletian between civil governors (praesides) and military commanders (duces) was abolished, and the Empire returned to a system much more similar to that of the Republic or the Principate, where provincial governors had also commanded the armies in their area.
  • The loss of the Empire's richest provinces, coupled with successive invasions, had reduced the imperial economy to a relatively impoverished state, compared to the resources available to the Caliphate.
  • The monetary economy persisted, but the barter economy experienced a revival as well.

• Consumer Income, Purchasing Power, and Confidence

  • The CPI and CCI are measures of the strength of the economy, and perceptions of businesses and individuals towards the economic future.
  • The economy affects buying power.
  • As Adam Smith noted, having money gives one the ability to "command" others' labor, so purchasing power to some extent is power over other people, to the extent that they are willing to trade their labor or goods for money or currency.
  • In essence, if the economy expands, causing consumer confidence to be higher, consumers will be making more purchases.
  • Illustrate the relationship between consumer purchasing power, pricing and the economy

• Basic Ingredients of the U.S. Economy

  • The number of available workers and, more importantly, their productivity help determine the health of an economy.
  • The nation prospered as well, so that the economy grew fast enough to absorb even more newcomers.
  • Labor mobility has likewise been important to the capacity of the American economy to adapt to changing conditions.
  • In the American economy, managers, responding to signals from markets, perform this function.
  • GDP shows the market value of the goods and services an economy produces, but it does not weigh a nation's quality of life.

• Commander-in-Chief

  • A commander-in-chief is the person exercising supreme command authority of a nation's military forces; in the US, this person is the president.
  • A commander-in-chief is the person exercising supreme command authority of a nation's military forces or significant element of those forces.
  • Pershing, who commanded the armies in the field.
  • The operational branch of the chain of command runs from the President to the Secretary of Defense, and from the Secretary of Defense down to the combatant commanders of the unified combatant commands.
  • Truman, led to the termination of his command.