What are the different types of command economy?

There are two basic types of command economy: socialism and communism. There may be many versions under these two wide groups that have several different pieces. Socialism is the first type of command economy; Communism is the second and more controlled of these types. Socialism carries a classical definition of government or authoritarian policies for groups rather than individuals. Communism relies on the state or authoritarian group to plan and control the entire economy from the collective ownership of resources and work.

In short, socialism is light communism. Citizens or government usually believe in common good and try to create an environment that works as a final goal. Individual choices and freedoms deal with a seat for freedoms of the whole group as a whole, such as all citizens in the country. The key point, however, is that citizens can still be able to decide or vote on political items in the socialist environment. Laws and reguHowever, they are established in a way to benefit the group as a whole, limiting the individual's ability to act alone without a group intervention.

Offshoot standard socialism is democratic socialism. This command economy requires both the economy and other social constructs to be carried out to suit social needs than to achieve profits. This is actually worse than standard capitalism, because it considers profits to be a bad, main theory of communism. Democratic socialism is also trying to put a working class in front of others, such as business owners and entrepreneurs. Socialists who believe in this theory consider capitalism to be exploited against those who do not receive profit, which goes further along the way to communism.

Communism is a more serious economy between these two options. Here the main theories force individuals to work in a strict authoritarian setEdí. Profits should not be a goal for those who in business. The work class must be placed in a higher position than the others, because communist governments believe that workers are the most important part of the economy. This command economy often has strict constructions that seriously limit individuals.

The two main purposes of communism have a classless company without business cycles. All government actions and government employees are working on this goal in the communist society. The final result is to be the perfect command economy with small to any inflation or unemployment. These goals are often difficult to achieve in the communist economy.