What is the difference between capitalism and command economy

Pahl and J. A survey of the various meanings of corporatism is to be found in Frederic L. On the levels of corporatism see Peter J. As to France see Matthew H. Lippincott Company, , pp. Philippe C. See e. Ilja Scholten ed.

Valerie Bunce and John M. Kelly ed. Alex Pravda and Blair A. Ruble eds. Michael Bruno and Jeffrey D. All rights reserved. Thank you for subscribing! If you have any questions feel free to call us at ZING or email us at vipaccounts benzinga. Contribute Login Join. Market Overview. Tickers, Articles and Keywords:. Wayne Duggan , Benzinga Staff Writer. November 28, pm Comments. View the discussion thread.

Trending Recent. Newsom Disappear For Two W This in turn leads to unemployment and inequality. On the other hand, the government is able to control the mode in which business is carried out in a command economy hence reducing unhealthy business practices as well as unemployment.

There is unequal resource distribution in a free market economy hence a wide gap between the rich and the poor. On the other hand, a command economy enhances equal distribution of resources hence a small gap between the rich and the poor. The drive to earn higher profits in a free market economy can lead to the misuse of natural resources. With a command economy, however, the government is able to control overuse of natural resources.

While a free market economy is a market system whereby the pricing of goods and services is primarily determined by the sellers and buyers, and is hence based on demand and supply, a command economy is an economy whereby the market system is fully controlled by the government. It is important to note that what may work for one nation may not work for another. Although most nations follow a mix of the two, it is essential to understand the pros and cons of each system before putting it in use.

Difference Between Similar Terms and Objects. MLA 8 Njogu, Tabitha. Name required. Email required. Please note: comment moderation is enabled and may delay your comment.

There is no need to resubmit your comment. Notify me of followup comments via e-mail. Written by : Tabitha Njogu. Economics in Context. Heinemann Publishers, The Rosen Publishing Group, Inc, Pearson Education India, User assumes all risk of use, damage, or injury.

You agree that we have no liability for any damages. This takes care of the economic questions regarding; The type of goods that should be produced How the goods should be produced Who should produce the goods An economic system must also take into consideration the rights of the consumers, producers and government laws.

What is Free Market Economy?