command economy
Free Market Vs Command Economy The Command Economy and the Free Market are two totally different economic systems. Both of which would require the persons in command to make decisions that will essentially determine whether that economy will thrive or fall. In order to examine the Command Economy and the Free Market it is necessary to firstly establish what philosophies and structures these economic systems follow. The strengths and weaknesses of the Free Market will be examined followed by the Command Economy; these will then be compared and the more efficient system (If there is one) at making economic decisions will be established. To begin with the Free Market Economy is currently the most dominant economic system in the modern world. ... The Free Market economy is “an economy where all economic decisions are taken by individual households and firms and with no government intervention. ... There are many advantages and disadvantages with the Free Market economy. The Free Market economy can act automatically which is a major advantage. In economic terms, “The economy can respond quickly to changing demand and supply conditions. ... ”(4) However there are also disadvantages to the Free Market economy. ... As with the Free Market, the Command Economy also has its advantages and its disadvantages. There is not currently any real major power that has a command economy; the best example of a major power that had a Command economy was the Soviet Union, which mainly consisted on Russia and many smaller buffer states. The Russian’s based their economy on the teachings of Marx and under Marxist theory “All property is theft” (5) and no market forces, therefore no consumer sovereignty. The command economy has been described as “an economy where all economic decision s are taken by the central authorities.