What kind of economic system do most communist countries have?

Answer 1

Most communistic countries have what is called a Command economic system. In these countries, the government makes most -- if not all -- decisions involving the economy.

The command economy is an economic system that is controlled by a central federal government, part of which is that everybody gets paid the same amount; no matter what job they have, no matter how many hours or how hard they work, everyone's salary is the same. In most examples of a command economy, the focus of the control is on the industrial goods that are manufactured in the country. It is not unusual for the govt. to own and operate the production facilities producing the goods, or to maintain a high level of control over companies within the country.

In theory, the concept of a command economy is to ensure that the country has a sufficient supply of industrial products that are available at prices that will be reasonable for the manufacturer as well as good for the overall economy. Often, the price of the goods produced is also regulated by the govt. This action is understood to maintain balance in the economy, ensure jobs within the industrial production sector of the job market, and also help to maintain the quality standards set by the govt.

Another benefit that supporters of a command economy often cite is the efficient use of resources. By carefully controlling the rate of production, it is possible for the central govt. to reduce the # of products that remain on the shelf and eventually become obsolete and have to be destroyed or sold at a loss.

One of the best examples of a command economy over the last 100 years would be the old Soviet Union. Many consider the structure of that command economy to be the standard for establishing and operating an economy of that type.