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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.