Communism: the biggest lemon of all?

Communism is a theory and system of social and political organization that was created in the 20th Century. It sought to overthrow capitalism and establish a system where property is owned by the community as a whole rather than by an individual. However, one of the biggest criticisms of a communist economy is the fact that it is entirely controlled by the ruling party. Due to this, most communist countries are economically backward compared to most of their democratic counterparts. The following article from the Times of India talks about why market-based economies are more prosperous and why the biggest lemon of all is a command economy:

http://www.swaminomics.org/articles/20011021_ultimatelemon.htm

The article basically discusses a number of reasons why market-based economies are more prosperous than command economies. Market-based economies consist of multiple manufacturers and suppliers. In such economies, there are multiple ways of rectifying and diminishing the market for lemons. For example, the auto manufacturer Toyota can repair a secondhand car and provide a good warranty on its performance. In contrast to this, there are no markets in command economies. Instead, the entire economy is controlled by a single party, and due to lack of competition, the markets get saturated with lemons. Unlike a government inspector, “Toyota stakes its reputation, built at enormous cost, and backs this with a warranty.”
This idea has also been extended into insurance markets where companies offer rebates for group insurance. To dissuade clients from undertaking risky activities due to the insurance, the insurance companies not only set a certain minimum sum, but also insist that all clients share the costs of treatment. These measures have been shown to be more effective than government-fixed premiums.
In the end, I agree with the author’s conclusion that today, the market has almost disappeared for the lemon that is communism.