9 Things You Probably Didn’t Know About Command Economy | command economy

A review of some of the basics of the United States government and the economics of the command economy will show that a major part of the equation that leads to economic prosperity is the way in which the economy is regulated by the government. For many years, economists have debated the idea that the command economy is the right type of business environment. The United States is not a typical command economy. Rather, it has been a command-and-order economy for decades.

In a control economy, the state sets the rules of economic activity, who does what, and who makes what. Private enterprise doesn't exist in a control economy.

In this type of economy, the government hires the private sector to do work and arbitrarily decides their wages and responsibilities. The government takes care of the infrastructure, taxes, licenses, and regulation of business. The government assumes all the risk of the business world. The only risk left to the business person is finding a customer. There is no need to develop an effective management system or to develop and market their products or services.

In a control economy, the state uses the law and the police force to control the business environment. They assume the risk of being sued and are often able to run the business smoothly as long as they pay the requisite taxes.

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When the owner and staff can make a profit, the owner enjoys the success of doing business, but most of the employees don't get very good things. The lack of good things from the businesses results in an economy that is unproductive and less productive.

In contrast, in a command-and-order economy, people have to take orders and do work in order to get rewarded with benefits. In a command-and-order economy, the owner of the business has a large percentage of the profits, and he or she gets very large amounts of the profits. While there is no need for a significant amount of investment, they also have to pay large amounts of taxes.

If you own a restaurant, you cannot enjoy tax writeoffs if you are successful because the owner of the restaurant may decide to decrease your income tax credit to pay for some of the costs associated with the operation of the business. On the other hand, if you are a manager in a department store, you cannot enjoy the tax writeoff because the tax man wants to keep the revenue from the sale of products flowing to the owners of that company.

A control economy is not just a question of income tax. Other government regulations that affect business are health insurance and occupational safety laws that make it difficult for companies to do business.

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Many people are confused because there is a lot of misunderstanding about the tax laws and how they work in a command-and-order economy. There is no need for this article to cover those issues.

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