Communist Economy:
Qualities:
A communist economy is heavily regulated and controlled by the government. It is sometimes referred to as a command economy. Usually, there are severe limits on private property rights; the government owns businesses, resources, and even homes. Being strictly controlled by the government allows the country to focus in on aspects it wants to improve upon. It can develop quickly in a specific area by concentrating money, labor, and other resources. Because of this, there is little freedom for people to decide what to produce and buy.
Qualities:
A communist economy is heavily regulated and controlled by the government. It is sometimes referred to as a command economy. Usually, there are severe limits on private property rights; the government owns businesses, resources, and even homes. Being strictly controlled by the government allows the country to focus in on aspects it wants to improve upon. It can develop quickly in a specific area by concentrating money, labor, and other resources. Because of this, there is little freedom for people to decide what to produce and buy.
Advantages:
- In this economy, there are usually health and public services that are free for the country's citizens - Since the government controls production, it can grow rapidly by putting more resources into one thing and less in another
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Disadvantages:
- Large populations make it difficult to standardize means of production and work to achieve the same goal
- Trying to have balance in the centralized system can be difficult |
Goals:
Ultimately, a communist economy is going to have focus on improving the whole, instead of the individual. Having a centralized system keeps people from competing for business. The government decides what is in the better interest for the citizens and acts as a control to provide what they deem the people need and what is most important to improving the nation's own economy.
Ultimately, a communist economy is going to have focus on improving the whole, instead of the individual. Having a centralized system keeps people from competing for business. The government decides what is in the better interest for the citizens and acts as a control to provide what they deem the people need and what is most important to improving the nation's own economy.
In The News:
http://www.economist.com/news/finance-and-economics/21650188-dont-mistake-stronger-rouble-russian-economic-recovery-worst-yet
Click the above link if you want to read into a recent event happening in a Communist Economy.
http://www.economist.com/news/finance-and-economics/21650188-dont-mistake-stronger-rouble-russian-economic-recovery-worst-yet
Click the above link if you want to read into a recent event happening in a Communist Economy.