Socialism and communism are the two types of command economy. Socialism focuses on government policies for groups, while communism relies on an authoritarian state to control the entire economy. Democratic socialism prioritizes social needs over profits and places the working class ahead of others. Communism aims to create a classless society without business cycles, but strict constructs severely restrict individuals.
There are two basic types of command economy: socialism and communism. Under these two broad groups, there can be many versions with some different parts. Socialism is the first type of command economy; communism is the second and most controlled of these types. Socialism carries the classic definition of government or authoritarian policies designed for groups rather than individuals. Communism relies on an authoritarian state or group to plan and control the entire economy through collective ownership of resources and labor.
In short, socialism is the light of communism. Citizens or governments usually believe in a common good and try to create an environment that works towards this as an end goal. Individual choice and freedoms lag behind those of the entire group as a whole, like all citizens of the country. A key point, however, is that citizens can still make some choices or vote on policy items in a socialist environment. Laws and regulations are set up in a way, however, to benefit the group as a whole, restricting an individual’s ability to act on his own without intervention from the group.
An offshoot of standard socialism is democratic socialism. This economic command demands that the economy and other social constructs be run to meet social needs rather than making profits. This is actually worse than ordinary capitalism as it sees profits as bad, a main theory of communism. Democratic socialism also tries to put the working class ahead of others such as businessmen and entrepreneurs. Socialists who believe in this theory see capitalism as exploitation against those who do not make a profit, which goes further down the path of communism.
Communism is the more serious planned economy of these two options. Here, leading theories force individuals to work in a strict authoritarian environment. Profits should not be a business goal. The working class must be placed in a higher status than others, as communist governments believe that workers are the most essential part of the economy. This command economy often has strict constructs that severely restrict individuals.
Two main purposes of communism are to create a classless society without business cycles. All government actions and government officials work towards this goal in a communist society. The end result is a perfect command economy with little or no inflation or unemployment. It is often difficult to achieve these goals in a communist command economy.
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