The Advantages and Disadvantages of Traditional, Command and Market Economies
An article on the advantages and disadvantages of the three most common economies in the world.
In the world of today there are three major types of economies. Traditional economies are dictated by tradition, customs, and, to a large extent, religion. As time goes on this type of economy is becoming more and more scarce. Command economies, such as the former Soviet Union, North Korea, and Cuba, have a central government that controls just about everything in the society.
The third and final major economy is the market economy. This is a mostly free economy, where the central government is weak and the businesses do as they please to make a profit. Each of these economies have many positive and negative aspects.
Traditional Economy
One of the few advantages existing in a traditional economy is that the roles of individuals are clearly defined. Every member of the society knows exactly what they are to do and most don’t have any complaints about it. There are also many disadvantages to this type of society. These societies are often very slow to change and when new technologies are introduced, these ideas and techniques are discouraged.
Command Economy
Command economies have many advantages to it. One advantage is that equality is focused on. The government tries to eliminate all private property and distribute its good equally. If done correctly no one is in poverty and no one is wealthier than another. Social services are also emphasized in this type of economy. The government will provide equal health care, education opportunities, and make sure all people are fed.
A third advantage to this type of economy is that it is capable of rapid change for major problems. The government owns the companies, so if production needs need to be shifted into a different area, the government is capable of doing it rather quickly.
A final major advantage of command economies is that they are very stable. Command economies will never have sudden depressions. Although command economies may seem like a utopian form of economics, they also have many disadvantages. In command economies there is very little freedom. The individual usually doesn’t have the opportunity to decide what they want to do for a career, and they have no control over the goods they receive. Another major problem is that there is little reason for innovations, hard work, or quality of the work.
Since no one makes more money than everyone else, the people feel like there is no reason to work hard. A third disadvantage is that there is little focus on consumer wants. Finally, when it comes to minor day-to-day changes, the government has a hard time cooping with them.
Market Economies
In recent years, market economies have been coming more and more popular. Three major examples of market economies are The United States, Japan, and France. One major advantage is that market economies can adjust to change easily. If there is a demand for one thing, companies have the ability to change what they produce instead of having to go through too much government protocol first. Rational self interest in market economies are also encouraged. People have the ability to make as much money as they can and do what is in their best interest.
Another positive to market economies is that the government tries to stay out of the way of businesses. Although the government sets certain standards businesses must follow, for the most part businesses can do as they please, allowing them to produce what they want, how they want. A fourth advantage to the market economy is that there is a great variety of goods and services for consumers. If there is a demand for a good or service, the demand will almost always be met in a market economy.
Although there are a lot of positives to market economies, there are also many negatives that go along with it too. One major problem with this type of economy is that it doesn’t always provide the basic needs to everyone in the society. The weak, sick, disabled, and old sometimes have trouble providing for themselves and often slip into poverty.
Another problem is that it becomes hard for a government with so many private businesses to provide adequate defense, education, and health care to its people. A third disadvantage to this type of economy is that there is uncertainty in the business world. One company could easily be forced out of business causing all of its employees to become unemployed and lose their means of income.
The final major disadvantage is that occasionally there are market failures. This can cause some companies to become way to powerful and become a monopoly. If the government doesn’t step in, the monopoly can take advantage of the consumers and charge ridiculously high prices.
Conclusion
Each of these types of economies has it’s own unique positives and negatives. It may seem like one economic system is better than another, but it all depends on what the viewer deems important.
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Post Commentweedle
On October 10, 2007 at 8:01 pm
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bobbie
On May 16, 2008 at 7:59 am
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prity
On June 15, 2008 at 4:56 pm
is market economy is bad or good?
shakira
On June 18, 2008 at 7:15 pm
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renicia
On July 17, 2008 at 7:52 am
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On August 29, 2008 at 10:23 am
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On September 5, 2008 at 10:18 am
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On September 11, 2008 at 9:26 am
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On September 30, 2008 at 4:11 am
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On October 27, 2008 at 9:24 am
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On October 27, 2008 at 9:53 am
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On November 10, 2008 at 2:12 am
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On December 2, 2008 at 12:44 pm
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On December 2, 2008 at 12:45 pm
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On December 2, 2008 at 12:57 pm
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On December 2, 2008 at 2:23 pm
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On December 2, 2008 at 2:26 pm
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On December 2, 2008 at 2:27 pm
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On December 2, 2008 at 8:39 pm
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On December 3, 2008 at 6:40 pm
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On December 5, 2008 at 7:34 am
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On December 8, 2008 at 10:09 am
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On December 15, 2008 at 10:16 pm
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c
On January 2, 2009 at 12:07 pm
three more points for traditional advantages:
helps to preserve our canadian identity
limited environmental damage
inexpensive
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On January 8, 2009 at 7:35 pm
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On January 9, 2009 at 2:22 pm
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Sarah is dumb
On January 9, 2009 at 2:27 pm
You guys are dumb
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On January 9, 2009 at 2:28 pm
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bob
On January 19, 2009 at 12:34 pm
GO COMMAND ECONOMY!!!
EBEN890
On February 2, 2009 at 6:42 pm
EDWARD WITH MESSED UP HAIR YOU HAVE NO FUTTER EDWARD
jackiechan_eben@hotmail.com
On February 2, 2009 at 6:44 pm
edward you and mickeal jackson are the same NO OFFENCE
haley
On February 5, 2009 at 7:35 am
everybody above me is gay=]
aman
On February 7, 2009 at 3:23 am
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On February 8, 2009 at 6:55 am
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BALLINING IS MY NAME!!!
On February 15, 2009 at 6:27 pm
THIS IS THE BEST IN HELPING ME FOR MY DEBATE
U GOT ANYTHING FOR A MIXED ECONOMY???? :S
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On February 26, 2009 at 5:17 pm
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mizz cherries
On February 26, 2009 at 6:59 pm
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On March 2, 2009 at 6:55 pm
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On March 11, 2009 at 1:58 pm
Poutine has “poo” in it
ivan
On March 30, 2009 at 7:35 pm
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On April 4, 2009 at 2:51 am
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On April 8, 2009 at 12:58 pm
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On April 12, 2009 at 11:01 pm
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On April 26, 2009 at 6:58 pm
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reeds
On April 26, 2009 at 7:03 pm
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On April 29, 2009 at 12:17 pm
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On April 29, 2009 at 12:19 pm
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AWESOME!!! ~!!!!!!!!!!!!!!!!~
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On April 29, 2009 at 12:19 pm
I agree tookie clothespin this is the best website ever!!!!!! It actually helps!!!!!!!!!!!!!
tookie clothespin
On April 29, 2009 at 12:21 pm
thanks squedgie!!!!!!!!! your support is appreciated!!!!!
superstar
On April 29, 2009 at 12:23 pm
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On April 29, 2009 at 12:24 pm
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ANAMWOTA
On June 4, 2009 at 2:43 am
THANKZ IT HELPED ME ON MY FINAL EXAM
Metalheads 101
On September 5, 2009 at 9:28 am
yo this helped…thanks man
jkrlmnop
On September 6, 2009 at 12:42 pm
thanks alot
john
On September 28, 2009 at 9:24 pm
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tom
On October 9, 2009 at 12:02 am
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alaka
On October 19, 2009 at 6:52 pm
thank you very much for your help
Pops Jr.
On October 28, 2009 at 10:43 pm
hey thank you for the understanding it helped me with my essay. you are a LIFE SAVER…
Pops Jr.
On October 28, 2009 at 10:46 pm
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natalie
On January 13, 2010 at 1:06 am
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Swit ass
On February 6, 2010 at 6:50 am
Anyone want to be in bed with me… I am a horny girl…
Pretty asssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssss.
Rob S.
On February 22, 2010 at 5:30 pm
“Command economies have many advantages”? Really. “A positive is that equality is focused upon.” So we are judging their intentions rather than results. If done correctly, no one is in poverty? That is the standard line. Marxism is a good idea, if only it would be put into practice correctly. Nonsense. Command economies are based on force. They always result in shortages of necessities, and few luxuries, not that anyone would be able to afford them. “Although command economies may seem like a utopian form of economics…” Sure. but only to those who have ignored the course of history.
ankur Shahi
On April 19, 2010 at 8:16 pm
thaanks sooooo much! really helped
Crystal Melody
On May 17, 2010 at 5:02 pm
Thanks
Helped a lot with my Geo. homework
TOTES MAN, YOU’RE AWESOME
LOLS(:
babyangel
On May 17, 2010 at 5:08 pm
Anyone want to sleep with me tonight?
No charge
Got a big round butt
CommandEconomySucks
On May 25, 2010 at 9:37 pm
In the part about the command economy, the \\\”advantages\\\” and disadvantages are blurred. In the same paragraph, it talks about the third \\\”advantage\\\”, and begins on the disadvantages a sentence later. On paper, the command economy sounds like a great idea. But we all know from a) the study of history and b) from personal experiences, that man has a tendency to want to grow his power, which is what happens in every command economy. There never will be a rule of the proletariat. It will never work. That\\\’s a fact.
And no thanks babyangel.
I don’t want herpes
Sexy Beast From Kentucky
On August 27, 2010 at 1:46 pm
i wanna party and i havce nothing better to do with my time then to just sit heres
Sarah
On August 31, 2010 at 9:53 pm
Too bad it doesnt have mixed economy
Dumb Ass
On January 12, 2011 at 8:57 pm
Blooopp poooop
HellboundHackers
On January 28, 2011 at 3:18 pm
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asdf
On January 28, 2011 at 3:22 pm
dancer97
On January 30, 2011 at 5:06 pm
This helped so much on my homework!!!!!! Thx so much, yeahhhhhhh!
QTPie13
On March 8, 2011 at 5:21 pm
I love MUL <3
LANA
On March 8, 2011 at 5:29 pm
WHO IS MUL?????????????????????????
lala land
On March 24, 2011 at 2:41 pm
this was very helpfulllll XD XD XD
deshan
On September 26, 2011 at 11:34 am
this web chill
Daniel Hess
On November 7, 2011 at 1:28 pm
HI i am locked in a asylum in new york. can you get me out.
Jerry
On January 10, 2012 at 8:22 pm
Really helpful
누구게
On April 9, 2012 at 2:44 am
지랄똥싸네
삐
On April 9, 2012 at 2:51 am
여기가무슨쳇방도아니고사람들왜이러케말이많아??!!
음....
On April 9, 2012 at 2:55 am
조잘조잘. 말 참 많네.
븅신들이 말도 많아.
ㅋㅋㅋㅋㅋㅋㅋㅋㅋㅋㅋㅋㅋㅋㅋㅋ
Yours
On April 10, 2012 at 8:35 am
You are wrong command economy has no advantages and is bad for the world!!!!!!!!!!!!
idk
On August 23, 2012 at 11:15 am
thanks it helped alot