Centrally Planned Economy \u2013 is an economic system in which the central government makes
all the major economic decisions for the country.
Known also as \u2013 Public Enterprise, Public Ownership, Socialist, Communist or Command
\u2013Concept of a Planned Society and Public ownership has been around for more than 4000
years. Many cultures used planned economies in some form (eg. Romans controlled labour
and production on controlled land).
The Industrial Revolution of the 18th and 19th century strengthened the idea of planned
\u2217 Utopian Socialism: a peaceful and democratic method to achieve moreIDE AL societies,
based on cooperation, planning and communal approaches.
\u2217 Utopian Socialists: Robert Owen, Charles Fourier, Charles Saint-Simon, Horace Greeley
\u2013Thought that if the environment was improved, an ideal society could be abolished in which
all people would be happy and prosperous. They did not want to destroy capitalism, merely to
rid it of its evils.
Louis Blanc \u2013 France \u2013 popularized the idea of large-scale PUBLIC OWNERSHIP. Combined
with labourers\u2019 control over workplace, and the distribution of government\u2019s according to
individuals needs. This method failed.
Karl Marx \u2013 Prussia \u2013 wrote Communist Manifesto with Frederick Engels and Das Kapital. Ideas
synonymous with Socialism and his theories became known as MARXISM.
\u2013both political and economic system
\u2013philosophy to provide an overall good life
\u2013believed \u201cThe Ruling Class must be replaced by the Working Class\u201d.
\u2013All aspects of a person\u2019s life determined by individual\u2019s relationship to the ***Means of
Production \u2013 the hand, tools, and factories required by people to engage in industry and
\u2013Class conflict \u2013 Marx maintained that throughout history a struggle has always existed
between those who owned the means of production and the workers.
Bourgeoisie \u2013 those holding a commanding position of economic power in a capitalist society,
the owners of the means of production. They rose from the traders and industrialists who came to
power after the agricultural revolution.
Proletariat \u2013 the class of industrial wage earners whose only resource is their labour.
\u2013Marx believed that the inevitable end to the class conflict would be a Revolution by the
Proletariat and a classless society would be created with only one class remaining \u2013\u2013 \u201cThe
Dictatorship of the Proletariat
\ue000A central planned economy
\ue000Increasing economic production
\ue000Distribution of income according to work performed
\ue000Increasing economic quality
\ue000A gradual disappearance of classes