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OMB: The abbrevation for Office of Management and Budget, which is an office within the Executive branch (specifically within the Office of the White House), that assists the President in various fiscal matters. Established in 1970, the Office of Management and Budget (OMB) is responsible for developing the President's annual budget request to Congress, managing the Executive Branch, and evaluating Federal government regulations. The OMB staff are appointed by the President, but unlike other appointments, they do not need Senate confirmation. The duty of preparing the fiscal budget, and what this means for fiscal policy, has made the director of the OMB one of the more influential economic positions in country, ranking just a notch below the Chairman of the Federal Reserve System's Board of Governors and the Chairman of the Council of Economic Advisors. The Congressional counterpart of the OMB is the Congressional Budget Office (CBO).
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                           COMMAND ECONOMY: An economy in which the government uses its coercive powers to answer the three questions of allocation. This is the real world version of the idealized theoretical pure command economy. While in this real world version some allocation decisions are undertaken by markets, the vast majority are made through central planning. A command economy is one in which government commands (directs, orders, or dictates) the vast majority of resource allocation decisions. The contrasting economic system is a market-oriented economy, in which resource allocation decisions are achieved primarily through voluntary market exchanges.To achieve the allocation in absence of market exchanges, command economies make use of central planning. While central planning exists to some degree even in market-oriented capitalist economies, the level of detail needed in command economies is extensive. Every input, every output, every intermediate good, every worker, every resource is allocated based on a predetermined plan. Such planning is inherently less flexible and less efficient than markets. The two most notable command economies of the 20th century were the communist/socialist economic systems of China and the Soviet Union. Other countries in eastern Europe, Asia, Africa, and Latin America also had various forms of command economies during the mid- to late-1900s. The philosophical basis of 20th century command economies can be found in the works of Karl Marx, including the Communist Manifesto and Das Kapital. These works presented the economic rationale for the decline of capitalism and the emergence of communism through the dictatorship of the proletariat, with an intermediate stage of socialism. While Marx's ultimate, utopian system of communism is totally devoid of government, the intermediate state of socialism involves extensive government control, hence a command economy. Soviet and Chinese political leaders and revolutionaries who adopted a communistic philosophy never quite made it past the intermediate socialistic, command economy stage.
Recommended Citation:COMMAND ECONOMY, AmosWEB Encyclonomic WEB*pedia, http://www.AmosWEB.com, AmosWEB LLC, 2000-2023. [Accessed: October 3, 2023].
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Today, you are likely to spend a great deal of time flipping through the yellow pages looking to buy either a T-shirt commemorating next Thursday or a birthday gift for your uncle. Be on the lookout for jovial bank tellers.
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The first "Black Friday" on record, a friday marked by a major financial catastrophe, occurred on September 24, 1869 -- A FRIDAY -- when an attempted cornering of the gold market induced a financial crises and economy-wide depression.
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"Managing intellectual assets has become the single most important task of business. " -- Thomas Stewart, author
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AFBD
Association of Futures Brokers and Dealers (UK)
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