Communism

Command Economy

Communism

Communism focuses on the successes of the people and of the nation, by stabilizing the economic structure and by giving everyone equal amount of opportunity to prosper and to do good for the nation in return granted the same pay.

Pros of Communism

  • Central planners can ensure full employment by devising enough projects to absorb all members of the workforce

  • This along with control on prices can bring stability to the economy

  • Also distribute income more equally than a market economy, because everyone shares in the nation’s wealth

Cons of Communism

  • Government controls wages and prices, workers have little incentive to work hard or to produce high-quality goods

  • Core problem in a command economy is that government planners, no matter how well intentioned, are less efficient at making economic decisions than the market is.


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What Is Communism?