Command Economies

The primary way command economies raise funds for their ventures is through taxation. When they tax people, there are different structures and theories they employ. In Sweden, there are high taxes for both the upper and middle class, as well as large corporations. Meanwhile, there is a much smaller tax burden on lower-class residents.

From this funding and broad power, the government frequently intervenes in the economy, ensuring economic stability.

Benefits of command economies include higher standards of living, more harmonized societies, and governmental assistance, helping those who cannot afford basic services. Disadvantages include less liberty, fewer choices, and generally a lack of innovation that stems from public involvement in the economy.