What are the Advantages and Disadvantages of a Command Economy?

North Korea

Communist North Korea used resources for military, not necessities. - Built large army; nuclear weapons program. - In 1990s and early 2000s, millions died of hunger; malnutrition. - In 1990s, production decreased and economy shrank. - Since 2003, some market activity allowed.

Karl Marx: Economic Revolutionary

Marx lived during Industrial Revolution. - Argued factory owners used workers as resource. - Exploited workers by keeping wages low to increase profits. - Workers would revel, established classless society. - Wrote "The Communist Manifesto" (with Friedrich Engels) Das Kapital

Impact of Command Economies

In theory, command systems fair to everyone; in practice, many disadvantages. - Central planners do not understand local conditions. - Workers have little motivation to be productive or conserve resource. - Artificially low prices to shortages. - People sacrificed to carry out centrally planned policies.

Socialism and Communism

Karl Marx influences some societies to adopt command economies. Socialism: Government owns some of the factors of production. Communism: Government owns all of the factors of production. - Is authoritarian socialism.

Command Economy Today

No pure command economy today. - Modern telecommunications bringing about change. - Some economies still have mostly command elements.