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They help to keep the economy in order.

"In order"implies that the government can make decisions in advance that are superior to those of private sector enrtreprenuers acting independently in a market economy economy on a daily basis.

The "order" that is provided is very likely to be comprised of desires and wishes of the "planners" charged with coming up with the plan rather than the realities of the marketplace. Command economies have failed over and over again.

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13y ago
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15y ago

Economic decisions in a command economy were typically made by the central panning committee where they created "5 year plans" to regulate production based on the information they had regarding demand and supply. Thus it was a "planned"economy :)

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13y ago

Stalin industrialized his country; formed 'communes' of workers, miners and farmers; and gave emphasis on mass and collective production.

Stalin dismantled Lenin's New Economic Policy and all of its reforms and stop-gap measures. This put all of the country's economic resources back under the control of the government. Then in 1928, he instituted his first Five Year Plan in 1928, which called for rapid industrialization no matter what the cost in money or human misery elsewhere.

In order to obtain the money needed to build new factories, Stalin virtually confiscated all grain from farmers, leaving many and their families to starve. People who objected to such harsh measures would be arrested and sent to prison camps, exiled, deported, imprisoned and/or executed.

In the 1930's, Stalin introduced the idea of "collectivization" of farms in order to increase productivity and eliminate individual farmers. He forced this program on the people using the same methods he used to force the industrialization of the economy, meaning brute force against all opposition.

The government acted through an agency known as Gosplan, which planned the economy not by free market forces but just by what the planners (and Stalin) felt would be best for the people. It decided how much or how many of any commodity would be produced and fixed the prices for those commodities.

Sometimes some of the planners in exercising their honest judgment in good faith, made decisions that Stalin disagreed with. Such planners lost their jobs, their freedom and many times, their lives.

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12y ago

Stalin used command economy to industralize Russia because he felt behind other countries.

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8y ago

Simply because it is part of the Communist ideology (everything should be owed, set by the state).

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11y ago

because he was awesome

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Q: How did Stalin use command economy tovhis advantage?
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