1. Command Economies This is the flag of the Union of Soviet Socialist Republics (USSR) Why do you think they chose the hammer and sickle as their symbol?

2. Command Economies Use the slips to estimate how much of each item you eat in 1 year. (Think about how much you would need for 1 day, then multiply by 7 (days), then multiply by weeks (4 weeks per month), then by 12 (months per year)

3. Command Economies Let’s experiment: Try and predict how much of each item you should produce to feed the entire classroom for one year Be careful, this food is perishable and if you produce too much the food will spoil. Conversely, if you produce too little, people will starve and die.

4. What you just did You tried to centrally plan the economy What happened to our village?

5. Command Economies Based on the ideas of Karl Marx (1818-1883) German Economist Lived in England First Sociologist Industrial Revolution

6. Command Economy Philosophy Produce needs, not wants Make needs as close to free as possible Treat workers better (safe, high wages, benefits) No private property Economic equality Central planning of production No entrepreneurs Benefits of economic system? Problems with economic system

7. USSR 1917-1991 Tried experiment with communism –Communism = command economy with restricted rights.

8. “Bread Lines”

9. Command Economies today Cuba North Korea China (sort of) Laos Cambodia Communist parties around the world Communist rally in France, 2007

10. So what about Socialism then? Socialism = many economic rules (fewer rights) Price controls High taxes Cheap or “free” healthcare education Safety for workers Democratic

11. A Range of Economic systems Depends on Economic Rights Free Market Mixed Command Hong Kong Germany France SwedenUSSR Cuba North Korea Dubai