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| A '''command economy''' (often called a '''planned economy''' or '''centrally-planned economy''') is a ] where the government directs the production decisions of publicly or privately-owned enterprises. This is said by supporters to be advantageous because it prevents unscrupulous businessmen from taking advantage of the people. It is criticized - chiefly by ] advocates such as ] - on the grounds that centralized planning has always been ineffective because it does not rely on ]s to guide production and distribution. | A '''command economy''' (often called a '''planned economy''' or '''centrally-planned economy''') is a ] where the government directs the production and pricing decisions of publicly or privately-owned enterprises. This is said by supporters to be advantageous because it prevents unscrupulous businessmen from taking advantage of the people. It is criticized - chiefly by ] advocates such as ] - on the grounds that centralized planning has always been ineffective because it does not rely on ]s to guide production and distribution. | ||
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Revision as of 04:03, 3 February 2007
A command economy (often called a planned economy or centrally-planned economy) is a planned economy where the government directs the production and pricing decisions of publicly or privately-owned enterprises. This is said by supporters to be advantageous because it prevents unscrupulous businessmen from taking advantage of the people. It is criticized - chiefly by free market advocates such as Milton Friedman - on the grounds that centralized planning has always been ineffective because it does not rely on price signals to guide production and distribution.
See: