What Is A Command Economy?

In a command economy all things are decided by the government. The numbers of goods and services that will be produced in the country, what will be the price of that product, in which areas the products can be available, all these types of decision are taken by the government and there is direct involvement of government in all process. The motive of command economy is the welfare of the people of the country. The government is allowed to make any investments in the country. In past these kinds of economies were experienced in the communist countries. The government believes that this economy is good for the national interest of the people.

The aim of the command economy is to gather the resources that can be invested in the country and can get profits out of it.  The government has the fear that if the economy is controlled by the private sector it can be dangerous for the country so this is the reason they were not in the right of giving private sector that much control. The government says by controlling the economy more and more jobs can be offered to the people of the country which will increase the way of living of people.