Planned economy is a kind ofeconomic system. The purpose of this structure is to meet the needs of the population. Each one works according to his abilities. And they get everything according to their needs.
The planned economy is mainlycharacterized by the presence of a single owner - the state. Monopolist collects marketing information. The state is engaged in planning and approval of obligations.
With previously known amounts of consumption and clearlyExecuted installations exclude overproduction. Due to the fact that the manufacturer does not experience commercial interest, there is no aggressive advertising.
A planned economy implies that the upbringing of society is carried out in a spirit of mutual assistance. And egoism is considered the most important problem of capitalism.
With unemployment, the population is eager to work. However, there are no jobs. The planned economy successfully copes with the unemployment problem.
Pros and cons of the system
According to many experts, the shortcomings of the structure continue its dignity.
For example, a planned economyelimination of unemployment. However, after a while there was parasitism. In this case, people were provided with jobs, but the work was avoided. According to experts, in a society that follows the principle of "each according to needs," such a result is inevitable. In this regard, the planned economy assumes the existence of a powerful structure of coercion to work.
Certainly, coercion to anything whatsoeveralways meets resistance. This, in turn, creates the need to create an apparatus designed to combat the discontented. This, of course, causes protests.
The most effective planned economy is embodied in a rigid dictatorship. This political system, moreover, successfully eliminates resistance and fights against criticism.
To keep such a system, it is necessarymassive propaganda. It should be noted that in the conditions of the planned economy there is practically no advertising of goods. But there is propaganda of the existing political system and advertising of labor.
The head of all production is the state. Many experts consider this fact a virtue of the planned economy, since the monopolist has a complete idea of what is happening.
A colossal amount of information flows from all over the world.state in one analytical center. It organizes data and schedules. To implement this (without the use of advanced technologies), it is necessary to involve a huge number of people.
The employees are not engaged in production.They are in charge of papers. Thus, a large number of employees accumulate in each section of the information network. As a result, the human factor reaches the dimensions of a catastrophe.
To the central apparatus, information does not comequite authentic. Repeatedly transmitted over a "spoiled phone", it changes, distorts. As a result, the center is beginning to take inadequate solutions. They, in turn, are also repeatedly transmitted and also distorted. As a result, the erroneousness of the decisions made hinders their implementation.
Over time, staff involved in"paper affairs," are formalized in a certain class of society, hostile to the rest of the citizens. Despite the fact that bureaucrats are not engaged in production, they begin to represent the true center of power. Without their solution it is impossible to solve any problem. To get the sanction, citizens start using bribes. As a result, corruption becomes an integral part of the bureaucratic machinery.
According to many experts, the main disadvantage inplanned economy is the lack of a natural motivation for productive and quality work. The employee does not understand why he should work better and more if he still receives a salary. In such conditions, when the payment is not distributed according to merit, and given the needs, nobody wants to work.
