Tuesday, February 04, 2014

Command Economy Reflection

Once it was announced that there was going to be a bake sale, we straight away all started thinking about what we have at home. After class, we quickly exchanged some ideas, then later at home, on Gmail chat, communicated more. This way we could know that one person was bringing this, and another that, etc. Our group raised R$55.50! We sold cookies, chocolate chips and cinnamon, chips, fanta and guaranĂ¡, candy, ice cream, and chocolate. We were all there the whole recess. I was behind the counter the whole time, my co-worker Lys, was dealing with the money, and Logan and Nadya were getting customers. This way we all had something to do and we all could get more money. 

When we got to class the next day, and we heard that the money that we raised was to be distributed evenly, I was kind of disappointed. My group worked hard for that money and it wasn't fair that now it had to be distributed evenly. Also, the week before, we did a simulation on a free market economy. There the money was not distributed evenly. So I think that you can't just "swop" economies, stick to one. Since last week we did a free market economy, then let's do a free market economy again! One group raised over R$100, because they stayed up later to get their goods ready. Other groups didn't, and so raised much less money, but still they got more money than that they'd raised. I think that if I knew the money was going to be distributed evenly, I would definitely not have worked as hard as I had during the bake sale. 

This system evenly distributes the money which is both an advantage and disadvantage. I think that is has more disadvantages though. When people are working in a command economy, they won't work hard, because they just get the money. Even though they did less work than if they were in a free market economy. In a free market economy, they would earn their money. A doctor has to pay attention very well in school, then goes to college for 4 years, then hopefully gets accepted to medical school, which takes another 4 years, and then 3-5 years more in residencies. When they get a job being a doctor, they get the money they deserve. If you're a waitress, you don't need to do anything. Maybe some simple addition, but that's it. You definitely won't get paid as well as a doctor then. That's a disadvantage to a command economy. An advantage though, is that if you are a teacher, and you have a family of four, you can treat your family, so when you are a doctor and you live by yourself, then you would get paid less, because you have no one feed. 

More countries have moved away from communism because it is affecting their society negatively. 

"Price controls in Venezuela have led to a shortage of basic goods like milk and toilet paper being produced.  Businesses say they can't make a profit at the low prices set by the government."

This is just sad. If countries don't even have basic goods, then how will they survive? I mean, if you are a business manager, and your company manufactures paper for schools, and the government sets the prices lower, I can imagine that you'd be fed up because paper isn't cheap. You need to cut down trees, which could lead to deforestation, then you have to chop up the trees, which without the right materials, or the machines that we have now a days, it would take ages. Then you have to stack them up, distribute them and send them to stores, for which you would need a truck driver for, who would need his license. That also costs money and experience.
People should earn what they deserve, and what they work hard for.

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