The Ongoing Struggle Between Capitalism and Communism
The first ever use of the phrase “command economy” was to describe that of the Nazi economic system. Though, the first successful communist system, or “command economy” was that of the Soviet Union (1922-1991). The Soviet Union’s way of dividing pay equally among all working citizens began to butt heads with the U.S.’s capitalistic, market system. Immediately after the end of World War II came the start of the Cold War. The United States, was out to stop all further spread of communism, but the Soviet Union was out to further increase its political and economic ideology. The key differences between a command system and a market system are defined by what goods and services will be produced, how they will be produced, and who will consume them. There are both positives and negatives in both systems. A command system is defined as “a system where the government, rather than the free market, determines what goods should be produced, how much should be produced and the price at which the goods will be offered for sale.” Due to no incentive to make profit, there is little innovation and a lack of quality in goods and services produced. Though, within this system, there are no social classes because everyone makes the same amount no matter the difference in job difficulty or skill requirement. The benefits of a command system offers universal health care, education, and transportation. North Korea, a communist country, uses its central planned economy to build large amounts of military supplies. An economy that uses a command system can quickly mobilize resources to produce whatever the economy needs. In a market system, society’s wants determined what’s produced and how resources are allocated. A benefit of a market system is the private ownership of land, unlike in a command system where all land is owned by the government and distributed out. This creates incentive for landowners to take care of and maintain...
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