PLANNED ECONOMY Meaning and
Definition
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A planned economy refers to an economic system where the government or a central authority has significant control over the allocation of resources, production, and distribution of goods and services. In a planned economy, the government typically formulates comprehensive economic plans or set specific targets and guidelines in order to coordinate and control economic activities within the country.
The main objective of a planned economy is to achieve social and economic goals such as equitable wealth distribution, development of key industries, and provision of essential services like healthcare and education. The government plays a vital role in determining the production levels, type and quantity of goods and services, and overall investment priorities.
Under a planned economy, the government exercises influence through various mechanisms such as centralized planning bodies, state-owned enterprises, regulations, and economic incentives or penalties. This system contrasts with a market economy, where decisions on production and allocation are mainly driven by private individuals and businesses based on supply and demand forces.
The concept of a planned economy has been implemented in different degrees across various countries throughout history, with varying levels of success and efficiency. Critics argue that such systems can stifle innovation, discourage entrepreneurship, and limit individual freedoms. However, proponents argue that a planned economy can promote stability, prioritize social welfare, and act as a counterbalance to market failures and inequality.
Common Misspellings for PLANNED ECONOMY
- olanned economy
- llanned economy
- -lanned economy
- 0lanned economy
- pkanned economy
- ppanned economy
- poanned economy
- plznned economy
- plsnned economy
- plwnned economy
- plqnned economy
- plabned economy
- plamned economy
- plajned economy
- plahned economy
- planbed economy
- planmed economy
- planjed economy
- planhed economy
- plannwd economy
Etymology of PLANNED ECONOMY
The term "planned economy" has its roots in the Latin word "plannus", which means "flat", "level", or "even". From Latin, it was adopted into the Old French language as "plan", referring to a flat surface or a levelled area. Over time, the word acquired broader meanings, including a detailed scheme or program.
The concept of a "planned economy" as an economic system managed and directed by centralized governmental control emerged in the early 20th century. The usage of the specific term "planned economy" to describe this economic system can be traced back to the influence of Karl Marx's theories, notably in his work "Capital: A Critique of Political Economy". Marx argued for the establishment of a society in which economic decisions and resource allocations are collectively planned and controlled.
The term gained more prominence during the Russian Revolution of 1917 and the subsequent establishment of the Soviet Union.
