Question

How did the command economies’ performance compare with the performance of market economics during the second half of the twentieth century?

Answer 1

During the second half of the twentieth century starting from the end of the second world war to 1980s, market economies increasingly outperformed command economies. Western Germany which was a market economy was providing its residents with a better standard of living as compared to Eastern Germany which was a command economy. By the end of 1990s, the per capita income of Western Germany quadrapuled as compared to Eastern Germany.Same difference was also seen in case of North Korea and South Korea where former was a command economy and latter was a market economy. Thus, market economies outperformed command economies by a huge margin during the second half of the twentieth century.