Command Economy
By:Savanna Phifer
What is a Command Economy?
A command economy is when the government controls everything. They make all the decisions on how much is produced, how much it cost, and where and how it's sold. Also for who it is produced.
The wealth is distributed equally among all the people, so basically everyone makes the same amount.
Historic and Modern Examples
Former Soviet Union was a command economy (historic example).
North Korea is a modern day command economy
Command Economy
Countries That Have/Had a Command Economy
Soviet Union
China
Cuba
North Korea
What are the Pros and Cons of a Command Economy?
PROS
Equal pay/income
CONS
Shortages
No competitions withing the economy to reduce/increase the prices in the economy
Not taking into account what the people want for and in the economy
No incentives to get ahead