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[quote:RoXY:MV8xNTc4NDI2XzMyMzAzODM4X0U4RDlEOTEx] [b] The Federal Centralization Economy[/b] James Hall, Contributor Wednesday, July 18, 2012 Activist Post A new hybrid of the command economy is being adapted to replace the last traces of a free market economy. The federal government, through the increase of administrative regulations and bureaucratic oversight is forcing a dangerous planned economy with dire consequences. It will not resemble the Soviet style of government ownership, because many business decisions will no longer rest with owners, but will need conformity to rules that benefit favored enterprises. Investopedia explains the old version of the ‘Command Economy’ as a planned economy. - Command economies are unable to efficiently allocate goods because of the knowledge problem - the central planner's inability to discern how much of a good should be produced. - Shortages and surpluses are a common consequence of command economies. A free-market price system, on the other hand, signals to producers what they should be creating and in what quantities, resulting in a much more efficient allocation of goods. [b]CONTINUE: http://www.activistpost.com/2012/07/the-federal-centralization-economy.html[/b] [/quote]
Economic Armageddon and You
Wondering about the American economy? This animated video explains inflation, stagflation, recession and more, all in 5 minutes.
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