Assalamualaikum warahmatullahi wabarakatuh. Hello, everyone. Let me introduce myself. My name is Oktavina Yoka Pratami and I am from Program Studi Akuntansi Fakultas Ekonomi dan Bisnis Universitas Lambung Mangkurat In this video, I would like to explain you about what is communist economic system. Communism, also known as a command system,
is an economic system where the government owns most of the factors of production and
decides the allocation of resources. The end goal of communism was to eliminate
class distinctions among people, where everyone shared equally in the proceeds of society. All decisions regarding production, distribution,
salaries, investment, and prices are made by the government. It is theoretically possible for the government
to create enough jobs and provide goods and services at an affordable rate. All the laws and regulations regarding the
market are also set by the government. So in this economy, there is no competition
as the government decides all the pricing. Moreover, the government provides capital,
machinery, and equipment. We are going to talk about the advantages of communist economic system. If executed correctly, the government can mobilize resources on a massive scale. This mobility can provide jobs for almost
all of the citizens. Unemployment can be largely avoided if the
government carefully plans the allocation of labor in accordance with production requirements
and labor skills. The government can focus on the good of society
rather than an individual. This focus could lead to a more efficient
use of resources. It doesn’t face inequality problems among
the citizens. National income can be distributed more equally
or in accordance with needs. The social repercussions of production and
consumption can be taken into account, the government is able to predict these effects
and choose to take them into account. Beside its advantages, communist economic system also has disadvantages. There is a lack of innovation since there is no need to take any risk. Workers are also forced to pursue jobs the
government deems fit. Because all economic structures are at the
beck and call of the government, personal freedoms are limited within a communist economy. Supply of goods may not be as par with demand. The state that previously adopted this system,
such as Union of Soviet Socialist Republics East Germany and Yugoslavia. Meanwhile, the state that still adopt this
system until this day are China North Korea Cuba Vietnam and Laos. Okay, that’s all from me about what is communist economic system. I hope you can understand about this topic. Thank you for your attention. Wassalamualaikum warahmatullahi wabarakatuh.

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