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Politics : President Barack Obama -- Ignore unavailable to you. Want to Upgrade?

To: RetiredNow who wrote (144916)

8/5/2014 9:42:41 AM

From: Wharf Rat

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tejek

Read Replies (1) | Respond to of 149317

"This is the very definition of a centrally planned economy."

No, this is the very definition of bullshit. Maybe you don't know what a centrally planned economy really is.

Definition of 'Centrally Planned Economy'

An economic system in which economic decisions are made by the state or government rather than by the interaction between consumers and businesses. Unlike a market economy in which production decisions are made by private citizens and business owners, a centrally planned economy seeks to control what is produced and how resources are distributed and used. The production of goods and services is undertaken by state-owned enterprises.

Investopedia explains 'Centrally Planned Economy'

Centrally planned economies assume that the market does not work in the best interest of the people, and that in order for social and national objectives to be met a central authority needs to make decisions. The state can set prices for goods and determine how much is produced, and can focus labor and resources on industries and projects without having to wait for private investment capital.

Most modern economies are a mixture of centrally planned economies and market economies, with governments controlling some aspects of the economy and the private sector controlling others.

investopedia.com

Central Planning Economy Definition – A centrally planned economy is an economy where decisions on what to produce, how to produce and for whom are taken by the government.

Central planning is associated with a Communist economy; the theory is that the government will overcome market failure and achieve equality of distribution. Supporters of centrally planned economy argue that when economic decisions are left to the free market. Monopolies emerge to exploit consumers. Furthermore, the Capitalists (those who own private property) can earn money through the labour of others.

Examples of Central Planning- The Soviet Union 1917-1991 and Soviet Bloc

For example, the Soviet Union often announced ’5 year plans’ where targets for steel production would be created.
economicshelp.org

A planned economy is the economic system in which decisions regarding production and investment are embodied in a plan formulated by a central authority, usually by a public body such as a government agency.

en.wikipedia.org