Command Economy: Mountainous Politicians, countries and ideologies from all over the world have been torn for years between what they should follow and believe. Countries argue over which policies should be adopted been the economist’s fundamental question. What would life be like if the country you lived in targeted equality- to live in a country where all people are equal, all are treated the same, and all are one? People desire to live in a place where social class is not an issue and money, food shortage, monthly bills, and shelter is nothing you have to worry about.
The command economy provides survival, value in work, stability, equality and care and economic resources for all its members, young, sick, disabled, and the old. The command economy is much stable then the market economy. One reason command economy is more efficient than a market economy is because the command economy focuses on providing survival for its people. All residents are provided with the basic needs for survival such as housing, jobs, education, clothing, food etc.
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The government provides all the needs.
There is no worry about bills, losing jobs, food shortage. In a market economy, you are not guaranteed all this, sure you are given well fare– but you are not guaranteed a job. What happens to those in need of a job? They aren’t given a job. In a market economy you are on your own. Karl Marx, a German philosopher, formed the command economy. In a market economy, you are constantly competing for survival. Whereas the command economy- you are guaranteed survival. The government provides all your basic needs.
According to Marx, “Disadvantage of a pure market economy cannot provide security to those who, because of sickness or age, cannot be economically productive. ” The bottom line is that the government of a market economy does not imply support to its residents. An older couple is not living under the government’s wing, but the insurance and money they have saved over the ages. The market economy has no interest for “providing public goods and services, such as national defense” says, Marx. Another reason the command economy is better than the market economy is because the command economy values what the workers produce.
According to Marx, “The definition of value – its value is the amount of labor needed to produce and sustain labor power… or it is the amount of labor needed to produce and sustain labor-power. ” Command economies take pride into what the workers produce. A product can be worth nothing, but it is worth much more as opposed to how much the worker has worked to produce the product. The government is in charge of producing the number of goods making sure that no money is wasted, and if it is, it is done correctly. The command economy has been successful as far as funding money.
The command economy is very stable and will never have sudden depressions or financial crisis. In the late 1800s the United States struggled with government ruling. For example, The United States had little control over the economy in the early 1900s which lead to one of America’s most devastating historic event, The Great Depression. The market economy tends to multiply the wealth of a nation much quicker due to evolution while the command economy plans the entire money making process, which has proved to be more beneficial.
The command economy, as I mentioned earlier is in charge of its production and the demand of the consumer. For example, the government owns the companies in a command economy so moving production to a different area is no problem because the government is capable of doing it quickly as opposed to the market economy. In a market economy there are different owners and different regulations to each area. The value of the worker is always valued in a command economy. Equality is a very strong component to the command economy.
The government tries to eliminate all property and distribute its good equally. If done correctly no one is in poverty and no one is wealthier than the other. Marx explains, “The workers are selling to an abstract capacity to labor, and because of this, the capitalist is able to exploit them by only paying labor-power’s value. ” This means that the worker is paid only by the work the worker has accomplished. For example, all residents are paid the same wage for the same amount of work that is done. The command economy also shares the same religion.
This way government and the church are able to work together unlike the market economy where the government and the church are always on the different sides. The government also provides education for all of its residents. All of its people are educated at the same level. Equality is a strong component to the command economy. The care and economic resources are also a big deal to the command economy. No other economy provides such resource. The market economy does not provide full coverage after you are unable to work. You have to save money for retirement-that comes from your pocket.
In a command economy you are guaranteed care and economic resources to sustain survival even if you are not currently working- the government will have you under its wing. The command economy is much more efficient then the market economy. Residents are worry-free when it comes to resources of survival. The government also takes pride into the workers work and eliminates social classes to create equality amongst the residents. It is a stable economy and provides care for its residents. The command economy is more efficient then the market economy.