Governments may use fiscal policy—additional government spending or tax cuts—to stimulate the economy during a recession. A fiscal multiplier is an estimate of the increased output caused by a given increase in government pending or reduction in taxes.

Increased government spending is likely to cause a rise in aggregate demand (AD). This can lead to higher growth in the short-term. If spending is focused on welfare benefits or pensions, it may reduce inequality, but it could crowd out more productive private sector investment.

The U.S. economy is improving after the destruction caused by the COVID-19 pandemic. This cautiously positive outlook is based on experts’ reviews of the key economic indicators, including gross domestic product (GDP), unemployment, and inflation.

If the U.S. economy collapses, you would likely lose access to credit. Banks would close. Demand would outstrip supply of food, gas, and other necessities. If the collapse affected local governments and utilities, then water and electricity might no longer be available.

Recessions result in higher unemployment, lower wages and incomes, and lost opportunities more generally. Education, private capital investments, and economic opportunity are all likely to suffer in the current downturn, and the effects will be long-lived.

Command economy advantages include low levels of inequality and unemployment, and the common good replacing profit as the primary incentive of production. Command economy disadvantages include lack of competition and lack of efficiency.

Individuality, freedom and creativity. A communist society would free individuals from long working hours by first automating production to an extent that the average length of the working day is reduced and second by eliminating the exploitation inherent in the division between workers and owners.

Disadvantages of communalism:-

• The government decides on what the people can have, rather than what they want.
• Most all businesses are owned and controlled by the government.
• Everybody is working, and most have nothing.

Communism is a political and economic system that seeks to create a classless society in which the major means of production, such as mines and factories, are owned and controlled by the public.

Understanding Command Economy The command economy is a key feature of any communist society. Also known as a planned economy, command economies have as their central tenet that government central planners own or control the means of production within a society.

Marxist–Leninist states

Vladimir Lenin’s conception and practice The text What Is to Be Done? from 1902 is popularly seen as the founding text of democratic centralism.