The Communist

Economy

By: STUDENT SAMPLE

Communism
Communism is an economic system in which capital is
owned by private government
As a political movement, it is a more intense branch of the
larger socialist movement.
Communisms stresses the idea of the control of the
earnings of producing economic goods in a society should
be in the hands of those who spend their labor for
construction
Communism an economic system in which all property is
publicly owned and each person is paid and works
according to his or her needs and abilities.

The Command Economy

An economy where supply and price are regulated by the

government rather than market forces. Government planners decide
what goods and services are produced and how they are
distributed.
Command Economies are sometimes called Centrally Planned
Economies because a central command is in control of the
economy.
In fact, the government is the final authority to take decisions
regarding production, utilization of the finished industrial products
and the allocation of the revenues earned from their distribution.

Compare and
Contrast
Command vs. Traditional
Command the government controls factors of production and in
Traditional the factors of production are up to you.
They had shared land between people.

Command vs. Market

Command is made by the government and Market is controlled
by the individual.
There are no similarities between these two economies, they are
complete opposites.

Compare and Contrast

(cont.)

Command vs. Mixed

Mixed is a market based economic system and government plays a
limited role.
Both Mixed and Command involve the government.

The Soviet Union

The Command Economy in the Soviet

Union
The Soviet Union came from Russia in 1917. Imperial rule in Russia fell
when the Czar Nicholas II was forced to resign from his throne. The
republican government was set up, but in November, it also came
tumbling down. The Bolsheviks took over being led by Vladimir Lenin.
Once he was in power they started to call themselves communists
hoping that the central planned government would be reduced, and it
was. In the 1920s, this continued until the breakup of the Soviet Union in
the year 1991.
The planners were mostly concerned about the actual building of the
national power and standing in the international community. So they
allocate the best labor, land, and capital to the armed forces, the space
programs, and the production of the goods like factories and farming
equipment. The most powerful committees running the system were
responsible for deciding the production process, the quantity, and the
distribution of 24 million different goods and services.