Command Economy V. Market Economy Essay Example

! In economics there are two main types of economies, the first being a market economy and the second being a command economy. Although there are many more types these are the most basic an important ones. In a market economy people and business give there own ways of doing things and answer the economic questions by themselves, the how, what, and for whom questions. In a command economy the central government is who makes up most of the answers to those types of questions. Which is the main reason why I believe a market economy is better than a command economy since you have more say and individual freedom. Although, there are many pros and cons for both types of these economies, the overall benefit and better one is the market economy. ! An advantage of a market economy isʼs adjustable to change gradually if needed. Unlike a command economy where change is unadjustable due to its bureaucracy. Also another advantage of a market economy is the individual freedom that everyone has. Like I stated before everyone is able including business and entrepreneurs to make their own decisions such as the how, what, and whom questions to run the business how they would like it. As where with a command economy you have the central authority making all of the decisions for you. Another major pro of a market economy is that is has decentralized decision making. But, a disadvantage about a market economy is that there are no plans or anything to provide people that are young or too old to work and are sick. There are no agencies such as the basic ones that we use here in America from FDRʼs alphabet agencies he used in the New Deal. Also, the competition is always unknown and you never know how itʼs going to end up and you maybe fired one day due to budget cuts or something along that line. ! As for a benefit for a command economy, itʼs capable of dramatic change within a short amount of time. Instead of it just adjusting gradually over time like the market economy. And the most