Differences And Similarities Between Canada And Modified Command Economies

The problem between demand and supple is a recurring issue in the economy. What to produce, how to produce, and who to receive are the core problems that needed to be considered. Various economic systems have been created in order to solve the issue. Modified or mixed market economy (An economic system in which both the private enterprise and a degree of state monopoly (usually in public services, defense, infrastructure, and basic industries) coexist. All modern economies are mixed where the means of production are shared between the private and public sectors. Also called dual economy.) in Canada and modified command economy (Examples of command economies as of 2014 include the former

Soviet Union, China, North Korea and Cuba. One of the

This essay will explore some differences and similarities on ownership, production and economic justice of both Canada and Soviet Union.

Firstly, ownership means legal right of possessing property (“Wikipedia”). The pattern of organization is private ownership in modified or mixed market economy, while that will be public ownership in modified command economy. In Canada, the ownership of land, factories, machines and personal belongings can be private. Individuals have the right to manage their own properties with less restriction. In contrast, in the former Soviet Union, only personal belongings like clothes and houses are wholly private owned. Land, factories, machines are mostly defined as state ownership, which means individuals do not have the control over the properties which are owned by the government. However, public ownership is not just meaning the property is wholly belonged to the government. According to the ownership, public ownership refers to enterprise, wholly or partially government owned (Allan Tupper,

“Public Ownership”). Like Air Canada and Canadian Broadcasting Corporation have been wholly or partially owned by the Canada government as they are the core industry in

Due to state ownership of the

Soviet Union, however, the production is determined mostly by the government yearly policy and planning. For example, the plan would be set up in five-year or one-year scale beforehand. This type of organization requires high level of coordination in order to be highly efficient. Although the government-controlled economy will be more productive based on the specific resources, but when the market change or the coordination is not good, modified command economy will not be able to function properly. Unlike the Soviet Union, Canada’s economic system is much more flexible to change in response to the market fluctuation.

Finally, economics justice is a part of social justice, whose ultimate goal is to create a sufficient opportunity for each person (“Defining Economic Justice and Social Justice”).

Economic justice is established very differently in Canada and the Soviet Union. Individual income is determined by job classification and personal work ability in Canada, therefore, the unemployment rate will never reach 100% as the market will adjust automatically according to the shortage or surplus of job market in this kind of mixed market economy. This