•
ECONOMIC DECISIONS ARE NOT ALWAYS
MADE BY INDIVIDUALS, COMPANIES,
FAMILIES, OR CULTURAL GROUPS.
•
IN A COMMAND ECONOMY, PRODUCTION
AND DISTRIBUTION ARE DIRECTED BY ONE
PERSON OR A SMALL GROUP OF PEOPLE
WHO FORM THE GOVERNMENT.
•
THAT PERSON OR GROUP MAKES ALL THE
DECISIONS, WHILE THE REST OF THE
SOCIETY FOLLOWS ORDERS.
•
EVERYONE’S JOB IS TO OBEY OR FACE THE
CONSEQUENCES.
Command economies of the world.
MILITARY SPENDING •
SOME COMMAND ECONOMIES ARE ALSO MILITARY
DICTATORSHIPS.
• THE GOVERNMENT OF A MILITARY DICTATORSHIP IS
CONTROLLED BY THE ARMED FORCES.
• A MILITARY LEADER MAKES DECISIONS ABOUT
PRODUCTION AND DISTRIBUTION OF GOODS AND
SERVICES.
• THERE ARE SEVERAL COUNTRIES IN AFRICA AND
ASIA WITH THIS TYPE OF GOVERNMENT.
• CANADA AND THE U.S. ARE CONSIDERED
DEMOCRACIES.
• IN MANY OF THESE
DICTATORSHIPS PEOPLE LIVE IN
POVERTY, WITH LITTLE CHANCE
FOR EDUCATION OR HEALTH
CARE.
• MANY COUNTRIES THAT SPEND
HEAVILY ON THEIR MILITARY
OFTEN DO NOT LEAVE MUCH FOR
SOCIAL SERVICES.
• THERE ARE SOME EXCEPTIONS.
MILITARY AND EDUCATIONAL SPENDING
African
Countries
Military
Spending (% of
GDP)
Education
Spending (% of
GDP)
Middle Eastern
and Asian
Countries
Military
Spending (% of
GDP)
Education
Spending (% of
GDP)
Angola
21.2
3.0
Israel
8.0
8.0
Brunei
7.6
4.0
Kuwait
8.2
6.0
Burundi
5.4
4.0
Oman
9.7
4.0
Eritrea
22.9
5.0
Yemen
5.2
7.0
Ethipia
9.4
4.0
China
4.3
2.8
India
2.5
4.4
Canada
1.2
6.0
USA
4.1
4.7
CANADA AT WAR
• DURING THE FIRST AND SECOND WORLD WARS,
CANADA’S ECONOMY WAS TEMPORARILY
CONTROLLED BY THE GOVERNMENT UNDER THE
WAR MEASURES ACT.
• THIS IS BECAUSE THE ECONOMY NEEDED TO
SWITCH TO THE PRODUCTION OF WEAPONS AND
EQUIPMENT.
• FACTORIES THAT MADE CARS MADE TANKS AND
AIRCRAFT.
• CANADA AND OTHER COUNTRIES SWITCHED
FROM A MARKET ECONOMY TO A COMMAND
ECONOMY.
COMMUNIST ECONOMIES
• 160 YEARS AGO, KARL MARX INTRODUCED THIS
NEW TYPE OF ECONOMIC SYSTEM.
• MARX WAS THE FOUNDER OF COMMUNISM, AN
ECONOMIC AND POLITICAL SYSTEM IN WHICH
PEOPLE WOULD WORK TOGETHER TO PRODUCE
GOODS AND SHARE THEM FAIRLY.
• COMMUNIST REVOLUTIONS TOOK PLACE IN RUSSIA
IN 1917 AND IN CHINA IN 1949.
• TODAY, THERE ARE FIVE COMMUNIST COUNTRIES:
CHINA, CUBA, LAOS, NORTH KOREA AND VIETNAM.
CUBA: A COMMUNIST COMMAND ECONOMY
• UNTIL 1957, AMERICAN COMPANIES INVESTED
HEAVILY IN CUBAN SUGAR, TOBACCO, AND FRUIT.
• HOWEVER, THEY TOOK THE PROFITS BACK TO THE
U.S.. MOST CUBANS WERE POOR AND COULD NOT
AFFORD AN EDUCATION.
• FIDEL CASTRO’S COMMUNIST FORCES TOOK
CONTROL OF THE GOVERNMENT AND SEIZED
AMERICAN OWNED BUSINESSES.
• TO THIS DAY, THE U.S. FORBIDS IT’S CITIZENS FROM
VISITING CUBA.
•
IN CUBA, THE GOVERNMENT DECIDES WHAT
TO PRODUCE AND HOW TO DISTRIBUTE
GOODS AND SERVICES.
•
THE ECONOMY STRUGGLES BECAUSE IT HAS
TO DO WITHOUT AMERICAN TRADE AND
INVESTMENT.
•
CUBANS LIVE WITH LITTLE AND DEAL WITH
SHORTAGES OF PRODUCTS.
•
HOWEVER, THE GOVERNMENT PROVIDES
FREE EDUCATION, DAYCARE, AND HEALTH
CARE.
•
TODAY, MORE THAN 95% OF CUBANS CAN
READ AND WRITE, AND MANY ARE ENGINEERS
OR SKILLED TECHNICIANS.