What are the disadvantages of a command economy?

Learn about the basic tenets of a command economy and what its inherent advantages and disadvantages are versus a free market economy. read more

Command economy disadvantages include lack of competition and lack of efficiency. Because the government controls the means of production in a command economy, it determines who works where and for how much pay. read more

The Top 2 Disadvantages of Command Economy. 1. A Failure on Coordination In command economy, planners try their best in coordinating their economic decisions pertaining on investment, trade, production and consumption of consumers and producers in the entire country. This is deemed impossible to be done with efficiency. read more

List of Advantages of a Command Economy. 1. Industrial power is boosted. To realize massive projects and attain imperative social goals, command economy would try to boost industrial power. 2. Monopolizing is not allowed. The main reason for this is that all the forces in a command economy are regulated by the government. read more