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Why are economies never purely market or command economies?
Why are economies never purely market or command economies?
Expert Solution
Economies are never purely market or command economies because the amount of control needed for a command economy is practically impossible, while a purely market economy would have no government to safeguard citizens.
A pure market economy without any government controls would leave workers without any ability to command pay raises, days off, or good working conditions. While it has been argued that Somalia is a pure market economy, their (extremely weak) government is trying but failing to control their economy. By contrast, communist nations tried command economies, usually through Stalinist collectivization, only to find they failed to bring about positive results.
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