command economy

Popular Terms
An economy in which market mechanisms are replaced by a centralized state authority which coordinates all economic activity through commands, directives and regulations for the purpose of achieving broader socio-economic and political objectives. In a command economy, most forms of output are publicly owned but the state exerts control over production, distribution and prices. For example, Nazi Germany was considered to be a command economy as was the Soviet Union under Stalin.

Use 'command economy' in a Sentence

The command economy did not allow farmers the freedom to grow as much corn as they wanted; instead, they had to grow as much as the government told them to grow or else they would not be allowed to grow corn again.
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The Soviet Union utilized a command economy during the Cold War which led to a great deal of friction with the United States of America and other western countries.
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The United States is a mix economy, and in the past has politically battled centralized governments that have used a command economy instead of a capitalist or free market one.
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