Find out Advantages and disadvantages of planned economy (command economy) listed below. So let us check out points on advantages and disadvantages to know more about planned economy. This type of economy system is controlled by governement. In Planned economy, government decides how much is produces, what to produced, the methods of the production and the price of goods or services.
Some points on Advantages of planned economy are:
- In planned economy wealth and income can be more evenly distributed.
- Little unemployement is seen in planned economy.
- Profits in planned economy is used to expand production of goods or services.
- Production of services or goods is pre planned to meet needs of people in a society.
- Consumer receives basic necessities
- Welfare of citizes is the primary goal of govenment
- In planned economy business cannot act against the interest of people
- Wasteful competition is avoided in planned economy.
- Public goods and services such as healthcare, education , housing is provided to the people
Some points on Disadvantages of planned economy are:
- Lack of incentives to work hard in planned economy
- Sometimes poor quality of goods and shortages
- Failure to meet set ideals or consumer needs.
- Lack of varieties of goods and services
- Consumers can choose only those goods or services which are produces and decided by the government