What are the benefits of the planned economy?

The planned economy allows companies to directly focus its efforts to achieve specific goals and can also limit or prevent some common problems associated with market economies. One of the key advantages of the planned economy is the ability to quickly and completely mobilize economic power to fight wars or complete large projects. The planned economy allows social values ​​to shape economic life in a way that a society can consider to be culturally appropriate, but which would naturally not appear in an unplanned system. The planned economies are also immune to certain key market economies.

In the planned economy, a central agency, usually the state, controls all activities or at least all production. The highest version of the planned economy, sometimes called the command economy, maximizes the benefits of the planned economy and disadvantages. Command economies have a complete production direction and may include Jakono consumption control, through the mechaniscan like allocation. Historically, the planned economies are the products of the modern era because they were first presented during the First World War, although the elements of economic planning have been common in Europe since Colbert's French mercantilism further.

One of the most important advantages of the planned economy is the ability to focus all the productive power of the nation on one key goal. Economic planning was used to industrialize the Soviet Union in 30 years. Planning was also used by every nation in both world wars. Many nations included a certain controlled role for corporations, but the overall economic direction came from centralized authorities. This type of planning has ensured that most of each nation's efforts focused on war production.

Some national objectives are less specific than victory over fascism, but can still be achieved mophaces are resources and actions KoordiNational level, easily. For example, the population of the Soviet Union in 1917 was largely illiterate, but at the time of its collapse it was at the same level as other developed nations. This example emphasizes other benefits of the planned economy: the ability to monitor social objectives through economic means. Market forces can lead to increased literacy, but planning and direction have greatly accelerated an increase in the level of literacy in the Soviet Union.

market economies, even if they are capable of huge productivity, are subject to volatility seizures. One of the significant advantages of the planned economy is the ability to escape from the volatility of the market economy and the business cycle. This process historically led to a lower extent of productivity, but often brought more satisfaction among citizens who were historically willing to trade in a certain amount of productivity for the promise of economic security.