How does a command economy handle economic inequality?

Economics Command Economy Questions



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How does a command economy handle economic inequality?

In a command economy, the government has control over the allocation of resources and production decisions. Therefore, it can directly address economic inequality by implementing policies and measures to redistribute wealth and resources. This can be done through progressive taxation, income redistribution programs, price controls, and subsidies for essential goods and services. The government can also regulate wages and employment opportunities to ensure a more equitable distribution of income. However, it is important to note that the effectiveness of these measures in reducing economic inequality may vary depending on the specific policies implemented and the level of government intervention in the economy.