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30 January, 12:00

What do traditional and command economics have in common

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  1. 30 January, 14:56
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    They have several things in common:

    •Neither economy is based on "market forces" as we understand them today. That is, the ultimate authority in each system is something other than the consumer. In fact, it could be argued that neither economy recognizes "consumers" per se.

    •Each economy is rigid in kinds of goods or work that is permissible. In a traditional economy, culture determines that only certain kinds of goods can be produced; in a command economy, the centralized authority determines production. In each case, individual economic production is outlawed or subordinated to the collective will.

    •Each economy posits a particular kind of social order, in which cultural identity or political imperative is more important than individual freedom.
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