econ2020_II -...

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I definetely think that both the command system and the market system have failed and  succeeded in different ways, as some students have commented. But, I think that the command  system in general is a giant failure, because I have lived in a command system (or very close to  it Russia, Mongolia) for some time. The market system allows people to freely exercise their  ideas and them to implement them. This is really something to think about because of the 'think  piece' that we are writing about. This is right along the same lines. I feel bad for any person that  has to live under a communistic society, there is so much more that can be offered when people  are free to choose and let the market itself govern success rather than a government. Yes, It has failed in many different countries such as the Soviet Union, eastern Europe, and  China. I find it odd that they learn from each others mistakes. There were two major problems  associated with the Command Systems: the coordination problem and the incentive problem. The central planners had to coordinate the millions of individual decisions by consumers,  resource suppliers, and businesses. They also had to establish a realistic annual production  target,make available all the necessary inputs--labor machinery, electric power, steel, 
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This note was uploaded on 05/27/2011 for the course ECON 2020 taught by Professor Villa during the Spring '11 term at Stevens.

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econ2020_II -...

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