How does the economy of a communist state work?

Answer 1

In a nutshell:

Long lines and short supply.

Bottom line:

It doesn't really work.

Answer 2

Basically, they believe that profit making can destroy an economy. If everyone is paid a basic wage and the wealth of the country is spread evenly among the citizens it should give them an advantage over the free enterprise system. This sounds good, in theory, but the spirit of competition is lacking in such a system and human nature, being as it is, the ones in power get the lion's share of the consumable goods and services. China has survived under this system, but at a terrible cost to the ordinary person. Cube has clung to communism for more than sixty years, as has, North Korea, but you know what life is like in those countries.

Answer 3

Poorly? What about China? China has the strongest growing economy in the world right now. In a nut shell, everything is run by whom ever is in power! That is whatever is important and makes money. Like natural resources, power, research, oil, etc....Anything smaller has to pass through the approval of the powers to be. All laws and rules are made by these powers to be, no voting! Oh I should mention why China is doing so strong, partly because, we in North America buy their products everyday, more and more now then ever. Thus we are aiding in China's growth in communism and economy and exploiting their people. More importantly their children! One more thing, the question was how does it work, not what we think of it. Big difference!!!!!!

Answer 4

Simple -- the govt takes everything -- and people get to ask the govt for stuff -- the govt distributes what it has, and usually ends up keeping a lot for the people in charge.

No modern nation has really tried communism -- the closest were attempts by China and the USSR that were mostly socialist edging toward communism -- both abandoned the economic model becuase it doesn't work on the national scale.

Communism only works on the small scale, where people are more concerned about the community than their personal greed -- and it only works when it's voluntary, not forced.

Answer 5

It is a central economy, whereas the United States has a market economy.

Answer 6

Ivan was fed up with waiting hours in the bread line, and began complaining loudly to anyone within earshot.

"Not so loudly, Comrade, the Party might hear," a man told him.

Just then, two Party apparatchiks appeared as if by magic, and dragged Ivan away into an alley. The people in line trembled in fear.

Once they got him to the alley, the first Party man said crossly, "See here, Comrade. It is not acceptable to be so critical of the Party."

"Yes," said the second. "Unacceptable. Please do not do it any more."

And they let Ivan go. Thoroughly depressed, Ivan made his way home to his tiny, cramped apartment. His wife saw how down her husband was and said, "Oh no! They are out of bread AGAIN?"

His eyes brimming with tears, Ivan sat down in the tiny kitchen and poured himself a shot of vodka.

"It is worse than that," he said mournfully. "They are out of bullets!"

Answer 7

To each according to his needs; from each according to his ability. But in the real world, since humans aren't perfect,
and we are basically selfish, it doesn't work that well. Same with any economic system. Most societies are a mixture. China has become more capitalistic in recent years.

Answer 8

Poorly

Answer 9

Nonexistently.

Answer 10

You'd have to ask the USSR - no, wait, you can't - they went belly up trying to compete with the evil capitalists.