The communist command economy is in the process of being replaced with a freemarket or capitalist economy.

With the abrupt shift to capitalism, many state-owned enterprises could no longer compete and were closed or sold to private investors. As the new owners improved efficiency and cut costs, many jobs were lost. Unemployment and underemployment are now widespread. Discuss the reasons that the industries and enterprises developed under the command economy are not competitive in the free-market economy. In this situation, to what extent is job loss a result of personal failings? The command economy and the free market economy are vastly different from one another. A command economy is best described as one large organization that is in control of making all the decisions for the rest of society. Essentially, it’s run by a group of people who have no form of hierarchy and therefore answer only to themselves. Corruption is typically higher in this type of system as there is no regulation to these individuals running the game (“Command Economy”). Also, in the grand scheme of the command economy, everyone would get their equal share even if one individual puts in more work than another. One worker could put forth all the work and yet everyone would benefit equally even if they put in little to no effort (Cox). This is the main reason why I believe that job loss has become more prominent as countries are switching over to the free market economy. In a free market economy, it’s all about what you know and what you can specialize in to make the machine work. It’s all about supply and demand. The producer and the consumer. For whom, how and what the economy can supply due to the customer’s demand (“Investopedia”). A free market economy is one where skill matters and the more you put in gives back a greater reward instead of awarding everyone the exact same benefits regardless of work effort (“Command Economy”). I believe people are beginning to realize that a free market economy is there to improve their way of life but they also need to adjust to the fact that it also means they would need to commit themselves to their craft instead of letting others pull their weight for them. A main point that was established in the command economy was the absence of private property. The property belongs to everyone which is essentially controlled by the government and no individual was entitled to a specific share. This varies greatly to the free market economy which is all private property and not publicly owned by the government or controlled by one central corporation (Cox). Also, there is no incentive to production other than the hold that political authorities have over the workers in the command economy. This is contrasted against the free market economy in the sense that it’s about consumer demand whereas the consumer has little to no relevance in the command economy (Cox). Overall, I believe that those who are so accustomed to the command economic system are having the greatest difficulty switching over and as a result are ending up jobless. They are used to having others do the work for them and as a result are not bringing

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