Command economy

click fraud protection

command economy has long existed in the Soviet Union, as well as in some countries in the eastern part of Europe.The main feature of such a polity is considered the absolute power of the government and its influence in all spheres of society.Of course, formally the whole property belonged to the society, and everything was in the hands of the population.

State in a command economy to strive to achieve the effect of a centralized, policy-planning, and in some cases came to despotism.In such circumstances, owners of enterprises and organizations were denied opportunities to operate independently, as completely dependent on the state apparatus.If we talk about market relations, here the supply and demand is not formed under the influence of free competition, and at the request of the order and the ruling party.This is not surprising, since the supervisory authorities involved in the distribution and sale of the finished product.

command economy organized in such a way that maximum power is concentrated in the hands of bureaucrats.And this, in turn, greatly exacerbates the bureaucracy.The lack of competition and excessive pressure state bodies hinders the development of the industry, resulting in lower production efficiency.The absolute monopolization explains the reduction of sales and a lack of food.In a society growing tension because of the total lack of food, clothes and other essential commodities.

production plan drawn up in advance directly to the authorized state bodies.The Government believed that the trust is so complex mechanism for calculating enterprise managers irresponsible and inappropriate.The biggest mistake of the planned development is the principle of their calculation, as estimates of production based on the established minimum needs of the population.It presupposes that the person does not take the goods more than it needs.While detailing and accounting contingency had to be present, perhaps it would improve the welfare of citizens.

command economy and suppress the activities of the media.In these times present strict censorship, ignoring that threatens not only the responsibility of deprivation of liberty, but also threaten the life of the brave.The concepts of freedom of speech did not exist, and in the press was given only material approved by regulatory agencies.

command economy - a system that has both positive and negative sides.The disadvantage of this way of life is above all in the absence of the production sector, which greatly reduces the performance indicators.In addition, the centralization of power lengthens the process of making any decision on adjusting the preliminary plan.While a request comes to the supreme governing body, then exercise will review and an official order from the adoption of the proposal or refusal, will take a very long time.

However, the command economy and has a significant advantage.The Government managed to achieve strict compliance with established disciplinary rules, because everyone knew that it would be for the infringement.In addition, every citizen could be sure in their own future.According to the slogan of the time, work ennobles man.The working man will always be provided and food, and shelter, and it was decided to re-parasites.