The Command Economy

Answer to major economic questions?

Since run from the top down, the central planning authority answers all questions

Variants of Command Economy

Facists and Communism

Marx’s Ideology

* Market driven capitalism creates a bourgeois society
* Capitalists rely on surplus value as their only source of profit in a capitalist society
* Means of production always come first, and determine the outcome of human history

Surplus value

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* Surplus value is the difference between the value of a worker's labor and the value of the goods they produce. It is the profit capitalists generate by exploiting workers in a capitalist system.


* Sole source of profit
* Difference between real labour value and determined value (wage)

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Outline Capitalisms path to self-destruction

1. Labour creates capital and surplus valye
2. competition causes growth in capital and more workers are needed
3. competition for labour - wages rise, surplus value falls
4. rising wages lead to labour saving technology
5. umeployment rises and wages fall
6. since only labour yeilds surplus value, subsituting men with machines does not stop profits from falling