II. B. Command Economy aka Communism Ch 2 section 2

II. B. Command Economy

aka Communism

Ch 2 section 2

Due to great suffering of workers in laissez-faire industrial economies in

the mid 1800’s, philosopher Karl Marx advocated a world-wide workers

rebellion. “Workers of the world unite! You have nothing to lose but your

chains!”

In many countries (Soviet Union, China, etc) workers rebelled and created a government

based on equality—a classless society. Government took control of economy and

the four factors of production.

To ensure equality, they abolished private ownership and

entrepreneurship.

Government took charge of business, and created monopolies for ease of

management, run by far away bureaucracies (government agencies).

House Un-American Activities Committee (HUAC)

Due to the inefficiency of government control and an absence of the market pillars,

command economies are in great decline.