| Revision as of 18:01, 24 December 2005 editRlove (talk | contribs)Extended confirmed users1,265 edits expand← Previous edit | Revision as of 19:17, 25 December 2005 edit undoNikodemos (talk | contribs)7,970 edits "Command economy" is merely a slightly pejorative term for a planned economy; the two terms refer to the exact same thingNext edit → | ||
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| In a '''command economy''', the government determines production levels and sets prices. This is said to be advantageous because it prevents unscrupulous investors from taking advantage of consumers. | |||
| ] advocates such as ] have criticized the '''command economy''' on the grounds that centralized planning ignores the ] and is therefore ineffective. Friedman and other economists also point out that not only does a command economy require central price coordination—an already difficult task, given the inability to utilize price signals—but the impossibility of juggling ''all'' of the prices within an economy, as all products are ultimately interrelated. | |||
| In a similar manner, the idea of a '''command economy''' has been criticized because of the inherently large ] associated with the distribution of goods. A good example is the ] which suffered many shortages and inefficiencies due to bureaucratic oversight and neglect. This idea may be attributed to ] who predicted the downfall of the ] because of insurmountable ]. | |||
| ==See also== | |||
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Revision as of 19:17, 25 December 2005
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