planned economy

Examples of planned economy in the following topics:

• Socialism and Planned Economies

  • A planned economy is a type of economy consisting of a mixture of public ownership of the means of production and the coordination of production and distribution through state planning.
  • Economic planning in socialism takes a different form than economic planning in capitalist mixed economies.
  • In socialism, planning refers to production of use-value directly (planning of production), while in capitalist mixed economies, planning refers to the design of capital accumulation in order to stabilize or increase the efficiency of its process.
  • Enrico Barone provided a comprehensive theoretical framework for a planned socialist economy.
  • The command economy is distinguished from economic planning.

• Mixed Economies

  • A Mixed Economy exhibits characteristics of both market and planned economies, with private and state sectors providing direction.
  • A mixed economy is an economic system in which both the state and private sector direct the economy, reflecting characteristics of both market economies and planned economies.
  • Subsequently, some mixed economies have expanded in scope to include a role for indicative economic planning and/or large public enterprise sectors.
  • Economies ranging from the United States to Cuba have been termed mixed economies.
  • Outline the plan behind and what governments provide in a mixed economy

• The Communist Economic System

  • An economy characterized by Command Planning is notable for several distinguishing features:
  • Local planning authorities are handed 1 year, 5 year, 10 year or, in the case of China, up to 25-year plans.
  • Labor is allocated according to state plans: in a command planning economy, there is no choice of profession; when a child is in school (from a very early age), a streaming system allocates people into designated industries.
  • Often a currency does not exist in a command planning economy and when it does, its main purpose is for accounting.
  • Explain how a communist economic system is representative of a command planned economy

• Economic Systems

  • Examples of centrally planned systems are communist countries, such as North Korea and Cuba.
  • Most other countries today are free market economies, with some aspects of a planned system (such as government owned and allocated healthcare).
  • In theory, a communist economy is one in which the government owns all or most enterprises.
  • In general, workers in socialist economies work fewer hours, have longer vacations, and receive more health, education, and child-care benefits than do workers in capitalist economies.
  • The economies of the United States and other countries, such as Japan, are based on capitalism.

• Economic Indicators

  • Economic indicators are key statistics about diverse sectors of the economy that are used to evaluate the health and future of the economy.
  • An economic indicator is a statistic that provides valuable information about the economy.
  • If it falls, the economy is likely to slow down.
  • If the average numbers of hours is on the rise, the economy will probably improve.
  • The survey gathers consumers' opinions on the health of the economy and their plans for future purchases.

• The Benefits of Mixed Economies

  • This security helps maintain a stable economy.
  • The elements of a mixed economy have been demonstrated to include a variety of freedoms:
  • taxes and fees written or enforced with manipulation of the economy in mind
  • Private investment, freedom to buy, sell, and profit, combined with economic planning by the state, including significant regulations (e.g. wage or price controls), taxes, tariffs, and state-directed investment.
  • Outline the characteristics of a mixed economy that help to maintain a stable economy

• The Disadvantages of Mixed Economies

  • The disadvantages of mixed economies can be understood through examining criticisms of social democracy.
  • One disadvantage of mixed economies is that they tend to lean more toward government control and less toward individual freedoms.
  • While most modern forms of government are consistent with some form of mixed economy, given the broad range of economic systems that can be described by the term, the mixed economy is most commonly associated with social democratic parties or nations run by social democratic governments.
  • In contrast to social democracy, democratic socialists advocate a post-capitalist economic system based either on market socialism combined with workers self-management, or on some form of participatory-economic planning.
  • Examine the criticisms of social democracy as a vessel to understanding the disadvantages of mixed economies.

• Financial Plan and Forecast

  • Financial planning aims to ensure that a firm is properly capitalized and makes appropriate investments.
  • Financial planning is important in ensuring that corporate investment is financed appropriately, as well as seeing to it that money is spent in worthwhile investments .
  • Organizations may carry out a form of economic forecasting which is the process of making predictions about the economy.
  • They may also happen at a more dis-aggregated level, for specific sectors of the economy or even specific firms.
  • Financial planning is important in ensuring that corporate investment is both financed appropriately, as well as seeing to it that money is spent in worthwhile investments.

• The Asia-Pacific Economic Cooperation

  • The Asia-Pacific Economic Cooperation (APEC) is a forum for 21 Pacific Rim countries (formally Member Economies) that seeks to promote free trade and economic cooperation throughout the Asia-Pacific region.
  • During the meeting in 1994 in Bogor, Indonesia, APEC leaders adopted the Bogor Goals that aim for free and open trade and investment in the Asia-Pacific by 2010, for industrialized economies and by 2020, for developing economies.
  • In 1995, APEC established a business advisory body named the APEC Business Advisory Council (ABAC), composed of three business executives from each member economy.
  • APEC is considering the prospects and options for a Free Trade Area of the Asia-Pacific (FTAAP), which would include all APEC member economies.
  • Since 2006, the APEC Business Advisory Council, promoting the theory that a free trade area has the best chance of converging the member nations and ensuring stable economic growth under free trade, has lobbied for the creation of a high-level task force to study and develop a plan for a free trade area.

• The Disadvantages of Socialism

  • Austrian school economists, such as Friedrich Hayek and Ludwig Von Mises, have argued that the elimination of private ownership of the means of production would inevitably create worse economic conditions for the general populace than those that would be found in market economies.
  • They, therefore, perceive public ownership of the means of production, cooperatives and economic planning as infringements upon liberty.
  • Economists of the Austrian school argue that socialist systems based on economic planning are unfeasible because they lack the information to perform economic calculations in the first place, due to a lack of price signals and a free-price system, which they argue are required for rational economic calculation.
  • Evaluate how key components of socialism, such as state ownership of the means of production and the centralization of capital, can be disadvantageous to an economy