Download Central Planned Economies

Central Planned Economies
The Central Government, rather than the
individual, answers the key economic
questions.
 Government decides what to produce,
how to produce it, and who gets what
 Government owns land, labor, and
capital

Socialism
Social and political philosophy based on
the belief that democratic means should
be used to distribute wealth evenly
throughout society.
 Political equality must be coupled by
economic equality
 Requires a high degree of central
planning to achieve economic equality

Communism
Centrally planned economy with all
economic and political power resting on
the hands of the central government
 Communist governments are
authoritarian, usually run by a single
political party or a dictator

Soviet Union
Most well known communist government
 Government controlled all agriculture,
industry and consumers
 Problems

Poor quality
 More focus on quantity
 Shortages of goods
 Diminishing production


More problems
Systems can not meet consumers needs or
wants
 Workers lack incentive
 Sacrifice individual freedoms in order to
pursue societal goals
