What are the advantages of the command economy?

Command economy is a situation where some kind of central body makes the main decision on what type of goods and services is created and made available to consumers in a given geographical location. This approach is sometimes known as a centrally planned economy and is considered an alternative to a free business market in which private and public companies can be created and launched at any time and freely on the market. Although there are critics of this particular type of approach, there are some advantages of the commanding economy that makes the strategy a viable option.

One of the main advantages of the command economy is that it is possible to adjust the production rate and availability of finished goods to meet the requirements of the population. Although the selection may not be as diverse as in other types of economies, it means that the chance of a shortage that results in accumulation of unwanted goods in warehouses is maintained in MPří another. Assuming that a government entity that oversees the production and distribution of the EmbassyFrequently goods, precisely predict the increase and decline in demand, that is, raw materials are used more efficiently and that production costs can also be maintained in reason.

Another of several advantages of command economy is the ability to use production to manage the course of the national economy in general. Production can be increased or reduced in some regions because stabilizing economic situations in these areas. If it is used to the best advantage, this also means that the standard of living for different communities can be maintained.

The main advantages of the command economy also include the ability to respond very quickly to some kind of internal disaster or other type of emergency. The Central Office may rapidly increase production in equipment -hired disaster as a means to maintain the flow of goods to the market. At the same time, it is also possible to increase the production of certain goods that will help the community more effectively overcome disasters.

While those who claim that the free enterprise system is inherently a better debate on all the usual advantages of the command economy, this type of planned economy remains a viable model in many countries around the world. A model that allows you to abuse those who control the economy can be very effective if the Central Office is well informed of the needs of the population and is able to ensure production efforts to meet these needs while maintaining costs to a minimum. It is not unusual for nations that use the Command Economy model to introduce at least a few measures that help reduce a part of the potential of abuse and allow the government and citizens to generally benefit from arrangers.