The command system, which is also described as Marxism, socialism, or communism, is both a political and economic philosophy. In a communist economy, the government owns most of the firms, subsequently controlling production and allocation of resources. One of the most well-known and well-documented cases of a communist government took place in the Soviet Union, beginning in 1917 and eventually falling in 1992. Idealistically, communism eliminates social classism and provides equal work for all in a particular society. The government appoints a central planning board to “determine production goals for each enterprise and to specify the amount of resources to be allocated to each enterprise so that it can reach its production goals.” In theory, communism attempts to create an egalitarian society.
The effects of the rise of communism in the Soviet Union were:
Communism can be described as the type of economic situation that has all the properties in the state in the hands of the government.
In such governments there is common ownership, no social classes and the means of production all lie in the hands of the government.
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