Question

What are the arguments of the people who advocate for planned economy non-democratic approach to national development?

400 words

Answer 1

ANSWER ;

If we talk about the Planed Economy it is a type of economic system where investment and allocation of capital goods is performed through economy wide economic and production plans. In this type of economic system it is government that determines What to produce, How to produce and For whome to produce . The advocates of Planed Economic system argues that it includes low lavels of inequality and unemployment and the common good replacing profit as a primary incentive of production. The advocates of Planned economy look it as areaction aganist Market failur of free market economic system. They consider that Free economic system is inherantly insuitable where problems of market failure is frequent and Public goods can not be treated in Free market economy through traditional demand and supply tools, here price machanism of Free market fails misrably. Where as in planned economy is a good alternate to deal with public goods throug its own methodology. They think free market economy is based on inequality and unsuitability due to its very nature. But in Planned economy due care is given and economy is run on the basis of equality.