Free Market Economics vs. Command Economies

Topics: Capitalism, Communism, Socialism Pages: 2 (471 words) Published: January 8, 2012
Imagine a country where the goods and services that are produced are based on the market. The market decides who gets them and how the economy grows. This is called a Free Market which is also known as Capitalism. In capitalistic countries citizens have sole ownership of their land or businesses. Profit is the motivating factor in this economy. The citizens are more willing to work due to the retention of profits from their businesses. Corporations are able to issue bonuses and rewards for those with high productivity. Businesses can establish themselves or trade with other nations for more profit. There is limited government input in a free market economy. Businesses compete with each other giving the consumer a wide variety of goods and services at a low competitive price. The market is determined by supply and demand. The citizens in a free market have the ability to elect officials into office that they feel would make a difference. They have freedom of speech, religion and press. They have the rights that were governed by the United States Constitution. In a command economy the government decides the goods and services that are produced, who gets them and how it will affect the economy. Socialism and Communism are both variations of this economy. Socialism is a medium between a free market and a communism economy. The major businesses are owned by the public while small businesses are still private. In this economy the Government will control health care, education, media and transportation. The private owned companies can still motivate their workers by providing monetary incentives and are provoked by profit. The public companies however are monitored by the government and therefore have limited incentives. Trading with nations in the socialistic economy has a lot of restrictions. The government even controls who goes to college. A communist economy the government controls almost ever aspect of the market and civilian freedoms. All...
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