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What is a Command Economy?

hello there everybody in YouTube land

welcome to the mr. sin Channel today

we're going to be talking about a

command economy now make sure to check

out my other videos on the different

types of economies which will be on

traditional a mixed economy a market

economy and they'll also be some on

communism and capitalism and socialism

now enough of the different other

economies we're talking about command

today so let's figure out what a command

economy is and how it answers the three

basic economic questions now while

watching the video makes sure to take

out your guided notes you can find them

in the description below I've created

these notes to go along with the video

to make sure that you understand all the

important information and when it comes

to your test or quiz you can just refer

back to your notes instead of watching

the video again a command economy is

when we have a central authority that is

going to answer all the economic

questions the government is normally

what it takes the shape of and this

government will answer the what the how

and for whom they are in charge of

everything

individual businesses and individuals in

the society have very little say of

what's going on today North Korea is

probably the closest thing to a current

day command a true command economy now

communism will also fall partially under

here and we'll get to that another time

when we get into capitalism communism

and socialism if you need to figure that

out check out those videos but we're

gonna get into now what are some of the

advantages to a command economy and what

are some of the disadvantages now like I

just said command economies answer the

three basic economic questions with a

central authority normally taking the

shape of the government if you need more

information on the economic questions

check out the video that I have on my

channel you can click the link on the

top right now but a command economy does

have a bunch of advantages it might not

seem like it because you're being told

what to do but a command economy can

actually change directions pretty fast

an example of it is the Soviet Union

they were able to go from a rural

agricultural society to a leading

industrial one in a relatively short

period of time now they did some things

that are questionable and we don't need

to get into that right

now but as an economy goes they moved

pretty fast now other advantages too is

you don't have to worry about what

you're going to do you're kind of told

and there's a lot of public services

that are offered for people at very

little cost or to no cost now there's a

lot of disadvantages to this type of an

economy though now one of the big ones

is it stifles innovation and creativity

I mean if you are getting told what to

do at all times why are you gonna care

we start to see people lose incentives

people get pushed out of society and

while it can handle some bigger things

and change pretty fast it does an awful

job at meeting the wants and needs of

the individuals living in that country

or society wherever we're talking about

and it can't deal with the day-to-day

issues is a very hard time grappling

with those and it also requires a huge

bureaucracy that has to dictate and tell

everyone what to do and so it's very

slow especially again when it comes to

these minor details so there is some

advantages to a command economy but

there's also a lot of disadvantages and

it's important to note both of them

we've seen societies throughout history

that have used a command economy and

some are still using it today and those

are the main things that you need to

know about a command economy make sure

you understand how it answers the three

basic economic questions what are some

of the advantages and disadvantages to

it and how the government works in this

economy that'll be really important for

you to remember until next time I'm mr.

syn thank you for stopping by make sure

to subscribe and support the channel and

I'll talk to you later