Planned economy

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Under the Soviet Five Year Plans, the amount of heavy industry in the USSR increased exponentially.

A Planned economy is a type of economy in which goods, services, and production are organised in accordance with a coherent plan. Because a planned economy, particularly one that is centrally planned, often contains little-to-no capitalists, and capitalism itself would be removed from society in favour of socialism, a planned economy is commonly rationally planned based upon human need, rather than the wanton self-interest and greed of individual bourgeois-oligarchs, states with planned economies have usually been able to virtually eliminate homelessness, mass hunger, and unemployment.[1]

Planned economies have historically been a primary component of socialist states, and furthermore have often produced consistent economic growth in the nations which had them. The main examples of modern planned economies are those within the Democratic People's Republic of Korea and the Republic of Cuba.

See also


  1. “The Soviet Union was a concrete example of what a publicly owned, planned economy could produce: full employment, guaranteed pensions, paid maternity leave, limits on working hours, free healthcare and education (including higher education), subsidized vacations, inexpensive housing, low-cost childcare, subsidized public transportation, and rough income equality.”

    Stephen Gowans (2012-12-21). "Do Publicly Owned, Planned Economies Work?" Retrieved 2022-8-2.