A number
of defects are noteworthy in a communist economy.
1.
Problem
of Unmatched Supply: Because
the decision as to what will be produced is not based on the market mechanism,
communist government has no way of knowing what to produce. This situation leads to unmatched supply and
demand.
2.
Too
Much Emphasis on Capital Goals: Communist
countries promote national goals which might not reflect the wishes and
aspirations of the larger populations.
For example, most communist economies typically emphasize capital
equipment and military hardware as opposed to basic commodities such as food
and clothing that touch on the lives of the ordinary citizens. This way, there is the likelihood of short
supply of consumer goods, and attendant poverty.
3.
Near
Absence of Incentives for Hard Work: The workings
of this economic system (communism) do not inspire hard work among the working
class because the government takes most of the earnings.
So
far, communism and capitalism have been examined as the two major economic
systems on the opposite extremes of a continuum. The third basic economic system, socialism,
combines elements of capitalism and communism.
If you liked this blog, you might like this Defects of Socialism.
If you liked this blog, you might like this Defects of Socialism.
If you enjoyed this post and wish to be informed whenever a new post is published, then make sure you subscribe to my regular Email Updates. Subscribe Now!
Thanks For Making This Possible! Kindly Bookmark and Share it:
0 comments:
Post a Comment