How does a command economy handle social welfare?

Economics Command Economy Questions



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How does a command economy handle social welfare?

In a command economy, the government has control over the allocation of resources and production decisions. Therefore, the government also plays a significant role in determining social welfare policies. In this type of economy, the government typically aims to provide basic necessities and services to its citizens, such as healthcare, education, housing, and social security. The government may also implement income redistribution programs to reduce inequality and ensure a certain level of social welfare for all individuals. However, the extent and effectiveness of these social welfare measures can vary depending on the specific command economy and the priorities of the ruling government.