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09/04/2019

How would I go about writing a compare and contrast essay about?

QUESTION
How would I go about writing a compare and contrast essay about?
Command economy compared to a Market economy.

What are some points I can research and add to it to make a good essay?

Thanks in advance

ANSWER
The difference is pretty easy. In a market economy, decisions are made by millions of people who act independently in their own self interest. In a command economy, somebody else (usually a government committee of some sort) makes those decisions for you.

Besides the issue of personal liberty, the economic issue is that small groups of people (no matter how smart they thing they are) do not consistently make better and more efficient decisions than a free market does. Command economies are all about thwarting the efficiency of the market in favor of political considerations. Command economies inevitably fail because the perverse incentives eventually create more cost than the system can bear — and in fact command economies must compete for resources against market economies. Especially in today’s capital markets, money flows to where it can get the best return. As Greece has found out recently, investors will not continue to lend you money to do things that generate no economic return.