In the market, unlike the command economy, there is a right to choose

How does the command economy differ from the market economy? We will try to answer this question briefly in this article.

Private property

In the market, in contrast to the command economy, private property prevails . The state does not interfere in the affairs of companies. Business entities have the right to freedom in business.

The role of the state in the economy

In the market, in contrast to the command economy, the role of the state is reduced to a minimum. Pricing is due to the balance of supply and demand. The state does not set a plan, as it was once in the USSR, to produce a certain quantity of goods, and does not acquire it from enterprises at fixed prices. Each company has the right to set the price on its own.

For a long time, purely liberal ideas predominated that the state should not interfere in economic processes. "The invisible hand of the market" will put everything in its place. This practice was also applied in our country by the liberal government of E. Gaidar, but it only aggravated the economic problems of our state.

Freedom of entrepreneurial activity

In the market, unlike the command economy, every economic entity has the right to:

• Choice of the company's development strategy;
• Independent choice of economic partners regardless of the political course of the country;
• Free disposal of profits, capital within the limits of the legislation;
• Freedom in pricing.

In our country, some items are not met. Whether it is good or not depends on specific situations. For example, the recent cooling of diplomatic relations between Russia and Turkey has seriously affected many sectors of the economy. And the decision to curtail all relations belongs to our country. Of course, a downed plane is a serious crime from the point of view of international law, but it's not worth it to "cut the roots" for decades. The damage was suffered by both Turkish and Russian companies.

We can not say that only our country is not a model of a market economy. Suffice it to recall the recent demarches of Poland and the Baltic states on the deterioration of free movement for residents of the Kaliningrad region in the border areas. Many European companies have built business on market relations with our citizens.

This suggests that even the EU countries today are abandoning the benchmark market economy. Sanctions also serve as an example.

Personal economic interest

In the market, unlike the command economy, market participants are materially interested in profits. I would like to recall the catchword in the Soviet era: "The state, therefore, nobody's." The expression clearly shows the attitude of people towards state-owned companies.

Differences and similarities of the command and market economy

Let's list the differences and similarities of the market economy and the command.

Results

So, in the market economy, unlike the command, there is a personal interest, competition, freedom in business. However, it should not be forgotten that today there are few states that can be called the benchmark of a command economy or a market economy. Each, even the most liberal, system has mixed features. Perhaps the exception is the DPRK and a number of totalitarian countries. In them, the role of the state in the economy, as in other spheres, is key. The command economic system, unlike the market economy, does not allow uncontrolled people. Some states allow private property, but only to limited areas, for example, such a system is practiced in Belarus.