A Command Economy is a key aspect of a political system in which a central governmental authority dictates the levels of production that are permissible and the prices that may be charged for goods and services. However, a more democratic approach is possible and this is called market economy. This blog takes a look at the command economy vs market economy. It also takes a look at an example of a command economy that was used by China between 1949 and 1978.Background: The Communist Party of China under Mao Zedong advocated fostering a command economy, with a high percentage of the country's resources being channelled into heavy.The command economy might have failed but we have not completely moved from that system. The command has been removed from economy but it still exists in other sectors in a different form.
