Command economic system and Market economic system compared

[palle11]

Let us talk a little about economic systems on the knowledge we have from economics studies. Basically there are 4 types of economic systems and they are
1. Traditional economic system
2. Command economic system
3. Market economic system
4. Mixed economic system

We are going to look at two of the systems to see the differences and similarities in them and the reason for picking those two is because they are majorly practiced by different countries of the world. So we looking at number
2 - Command economic system and
3. Market economic system.

2. Command economic system

This is an economic system where high control and regulation is from the government. This means it centralized from top. As the name implies, economic activities are ordered strictly by the government at the center to say. All resources are channelled to the government including oil and other natural resources, government becomes the channel of control and regulation. These kind of economic system are mostly known with third world countries.

It has its advantages and disadvantages

It advantages are few,

1. It has low level inequality (though on theory)

2. Perceived equality and unifying good for heritage and acquisition.

Disadvantages

1. No seriousness: Of course they say government don't have business in doing business. Government personals are individuals from families and with emotions remember. So that can affect their decisions and activities. It may turn a family business or lackadaisical approach towards it.

2. Highly corrupt: I think because of the ineptitude in the part, certain aspect of revenue generation maybe manipulated or omitted. Example, countries that practice such has low tax accountability and regime, and their ROI , IGR (Internally Generated Revenue) is usually poor plus low GDP.

3. Monopoly: The system is likely to be hijacked by a few individuals at the top who may make policies to the favour of themselves.

3. Market economic system

This economic system I would say is directly opposite of the command economic system. Here, the government own little control of key economic activities in the country. As the name also implies, the people are involved in the policies of the economy and this allows the market forces to determine waves of prices. The government provides environment and the people have major control of the market. It can pass as a deregulated economy and countries practicing this system are the technologiically developed countries.

Advantages

1. High production level: This type of economy will encourage productivity, creation of jobs and employment because there suppose to be abundance of work to do.

2. Exportation: High level of exportation will go on from the system that encourages production and innovation.

Disadvantages

1. Bourgeoisie may emerge: As a result of free market, trade and production opportunity, wealth creation maybe vary and that may lead to unequal distribution of wealth.

There are many more advantages and disadvantages, please don't add more. Just contribute, thanks.

However, there are two sides to a coin as one good is bad for another. We just briefly discussed these two opposite economic system.

What do you have to say friends

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1715211495

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[bassbity]

In general, the economic system in points 1 and 2 is indeed often found in various developed countries and has even become increasingly prevalent. however, as a small business actor, the application of the economic system is tailored to the needs and harmony in the area where I live.

Thus, if points 2 and 3 are not deemed unsuitable, for some unsupportive reasons. then I'll take the first point. because the traditional system is still commonplace where I live.

Then, can you provide input that the application of a traditional economic system is able to compete with or be parallel to other economic systems.

[fiulpro]

I do think that none of these would work alone since most of the times when we talk about the Government being corrupt, we have to realize that people are also Corrupt and they won't handle it as well. The non Centralized currencies would be used in ways that would not be good. Therefore I do think that the only system that could work would be :
Mixed
It will also depend on the fact where you are going to be using that , for different places and different situations one might be superior over the other.
But people have to accept this more. This would take time ofcourse since they have been always under a governing body And the financial independence is just in the books. Therefore for right now even Government needs to incorporate some of the non Centralized market in their own body. This way they can not only control it to an extent but also it would help the people who trust Government to engage in these things more.

[palle11]

then I'll take the first point. because the traditional system is still commonplace where I live.

Then, can you provide input that the application of a traditional economic system is able to compete with or be parallel to other economic systems.

The traditional economy definitely can't run side by side the others. Such economy is literally an agrarian economy with most crude technology, low human capacity for production, though it may be based on individual survival level. Therefore, it may not be organized to handle the digital economy as the globe is heading off to. They may not adapt as other economies are to technological changes.