The steady nature of Planned Economy encourages investments in long-standing project-related infrastructures without any possibility of financialrecessions.
The vision of Planned Economy is not making profit. This system prefersdeliberate planning of the entire money making process for better results. Infact, such sincere economic planning in the long run proves beneficial toimprove the economic conditions of a country.
Advantages of Planned Economy
Long-term infrastructure investment can be made without fear.
In this system equality is focused on. The government tries to eliminate all private property and distribute its good equally.
The government will provide equal health care, education opportunities, and make sure all peopleare fed.
Assurance of the use of resources:
A planned economy can maximize thecontinuous utilization of all available resources.
Efficiency of managing:
This system is organized in such a way that helps tosatisfy the majority of the population.
Quick problem solving:
It is capable of rapid change for major problems. Thegovernment owns the companies, so if production needs need to be shiftedinto a different area, the government is capable of doing it rather quickly.
Reduction of unemployment:
This system helps to reduce unemployment.Government provides services to all.
Disadvantages of Planned Economy
Inefficient resource distribution:
Some times it cannot
detect consumer preferences accurately.
Lack of freedom:
People cannot decide about the production of their desired products. They have less opportunity to decide what they want to do for a career.