Command Economy

The ideal Communist economy, as envisioned by Karl Marx, is now known as a command economy. In theory, this system would empower the working class and abolish privately-owned wealth; the community would make all economic decisions. A centralized long term plan could ensure a country's wealth, reduce unemployment, and create a united workforce. There are five main steps to a command economy:

1. The governing powers create a 5, 20, 50-year plan that accounts for the spending, income, salary, number of employees for every industry.

2. Resources and workforce, determined by the program and allocated by the government, get distributed to each company.

 

3. The plan sets priorities, quotas, prices, etc. to ensure each business's prosperity.

 

4. The government monopolizes all products determined to be essential (finance, utilities, and automotive).

 

5. Law enforcement regulates and reinforces the plan on federal, state, and local levels.

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This system guarantees that all major companies are government-operated and therefore do not have to deal with lawsuits, disputes, or competition. A country's economy can quickly turn around under this strict economic environment, and one centralized economic power means that unemployment rates decrease substantially. The government could resign someone's profession based on its aptitude and abilities at any point to maximize economic growth. However, Often command economies will lead to black markets and illegal trade. The system encourages hard work but doesn't have a place for creative and innovative minds. A successful and modern communist economy relies on adaptation.