![]() ![]() There are many other examples of command economies throughout history, including: Fidel Castro in Cuba, Kim Jung-Un in North Korea and other periods in the history of the Soviet Union. Regardless, Stalin’s collectivization of the Ukrainian farmland displays a command economy because it shows a government trying to direct the means of production of the economy and taking ownership over private property for the state. This event is famous for leading to the Ukraine Famine, which is also known as the Holodomor. This means the Soviet Union forced the farmers of Ukraine to give up their privately owned farms and instead the land came under the public (government) ownership of the Soviet Union. ![]() For example, in the early 1930s he collectivized the farms of Ukrainians. Stalin famously ruled over the Soviet Union as one of the most controlling dictators in all of history. One of the best examples of a command economy in history is the economy of the Soviet Union under communist dictator Joseph Stalin during the middle part of the 20th century. As such, communist dictators often use a command economy as a way of further controlling their countries. Similar to Marxism, communism is centered on the idea of establishing a society based upon public ownership of the means of production and the removal of any form of social classes. Communism is an economic and political system that is based on the principles of socialism, especially the earlier development of Marxism and the ideas of Karl Marx as expressed in the Communist Manifesto. ![]() Furthermore, command economies are also often associated with communist states. A dictatorship is a form of government in which most or all authority of the country is in the hands of a single individual the leader. Because of the nature of command economies, they are often associated with dictatorships. Regardless, they both involve a high degree of government intervention in the economy. Whereas, they argue that a centrally planned economy simply involves an organized economic structure or plan that is carried out by a centralized leadership with less public ownership. Some economists argue that a command economy is different from a centrally planned economy in that a command economy involves much more public (government) ownership of the means of production. This is meant to highlight the idea that the economic decisions of the country are controlled by a central force, which is the leadership of the government. Because of this, a command economy is often also referred to as a centrally planned economy. Instead, under a command economy, the price of a given good or service is set by the government. Under supply and demand, which is a right-wing principle, the price of a good or service is set by the demand of the consumers. As well, since this system does not worry about the individual needs or desires of people in society, it is not based upon the principles of supply and demand. As a result, there are usually no privately owned corporations and the government is responsible for controlling the production output and the wages of the workers. Furthermore, in a command economy, the government owns the means of production and there is little or no private property. The individual wants or desires of the people of the country are not considered, as only the leader is in control of the economic plan. Therefore, the leader is responsible for determining the needs of the citizens of the country, deciding what should be produced and carrying out a plan to create the goods and services that are needed. For example, in a command economy the economic decisions of a country are determined by the leader(s) and very little or nothing is determined by individual people (consumers). ![]() This means that a command economy contains a high degree of government intervention in the economy through different means and is focused on achieving the best possible prosperity for the country. A command economy is considered to be on the left side of the economic spectrum and is based on the principles of collectivism, such as: economic equality, collective interest and public property. ![]()
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