Difference between revisions of "Command economy"
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| − | {{stub}}A command economy is an system in which government, not the free market, guides and plans business activity. | + | {{stub}}A '''command economy''' is an system in which [[government]], not the [[free market]], guides and plans [[business]] activity. |
Examples include [[Communism]] and [[Fascism]]. [[Nations]] with [[Free Market]] economies sometimes institute command economies in time of [[War]], for example the [[United Kingdom]] in [[World War II]]. The heavily regulated economies of the [[Euro]] zone have evolved into de facto command economies. | Examples include [[Communism]] and [[Fascism]]. [[Nations]] with [[Free Market]] economies sometimes institute command economies in time of [[War]], for example the [[United Kingdom]] in [[World War II]]. The heavily regulated economies of the [[Euro]] zone have evolved into de facto command economies. | ||
| − | Command economies can be less wasteful than the free market but also tend to stifle freedom and creativity. Economic stability becomes more important than innovation, as the | + | Command economies can be less wasteful than the free market but also tend to stifle [[freedom]] and [[creativity]]. Economic stability becomes more important than innovation, as the [[minister]]s buy off their constituents with continued [[employment]], and the whole structure comes crashing down when it is unable to adapt to changes in the availability of [[natural resources]] and in [[demand]]. |
[[Category:Economics]] | [[Category:Economics]] | ||
Revision as of 21:30, May 8, 2007
Template:StubA command economy is an system in which government, not the free market, guides and plans business activity.
Examples include Communism and Fascism. Nations with Free Market economies sometimes institute command economies in time of War, for example the United Kingdom in World War II. The heavily regulated economies of the Euro zone have evolved into de facto command economies.
Command economies can be less wasteful than the free market but also tend to stifle freedom and creativity. Economic stability becomes more important than innovation, as the ministers buy off their constituents with continued employment, and the whole structure comes crashing down when it is unable to adapt to changes in the availability of natural resources and in demand.