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Advantages planned economy

Преимущества плановой экономики

A planned economy is necessary for Russia’s development, only she can lead the country out of the crisis, raise industry and agriculture!


A planned economyis an economic order in which material resources are publicly owned and allocated centrally, it requires individuals and enterprises to act in accordance with centralized economic planning. Such an organization of economy existed, say, in the USSR.


With such a planned management of the state bodies practically fully expect the range and volume of production of all goods and services, regulate the prices of all products and the value of all wages. Investment decisions are also taken centrally.


This economic system often denies private ownership of the means of production either completely or partially, and oppose a market economy.


A typical example of planned economy was the Soviet economy, which was estimated by the CIA as the second power in the world. State body regulating the economy was the USSR state planning Committee, which was established in February 1921, on the basis of a fee of electrification. Gosplan developed projects from the beginning of the year, and since 1925 — for 5 years (1928-1932 g).


The existing state with a centrally planned and mixed economies: Cuba, Saudi Arabia, Iran, North Korea, Burma, socialist Republic of Vietnam (Vietnam), Lao people’s Democratic Republic (Lao PDR), China, Nicaragua, etc.


Elements of the planned economy were widely applied in all belligerent States during the Second world war. In time of peace in India to its economic reforms of 1991 and in Iraq under Saddam Hussein (1979-по2000 year).


Call the main advantages of Socialist planned economy is:


Less social stratification;


The possibility of concentrating all resources for the production of certain products that may be important in a crisis situation.

Excludes unemployment and ensures use of the entire workforce of the company. Capitalist economy inevitably generates unemployment, and the capitalists use it as a means to ensure their businesses with cheap labor.


Planned economy presupposes the development of production, which is directed on satisfaction of needs of society. Capitalists invest their capital in those industries where there is a higher rate of return.


Provides for planned development of science and technology in accordance with the needs of the national economy. Under capitalism, the development of technology is subject to the law of competition and anarchy of production occurs very unevenly and inevitably increases the disproportions in the development of production. The market never will put everything in its place!


Socialist planned economy not only saves the society from the inherent capitalist economy enormous waste of social labor, but also provides the most economical and efficient use of all resources within enterprises and across the economy, reveals new sources of reserves and production growth.


Socialist state routinely sets production ties between enterprises and implements the most rational location of socialist production. The population of the country will work at home in single-industry towns, small provincial centers, agricultural firms and farms, and do not wander across the country in search of work.








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