Economics Communism Questions Medium
In a planned economy under communism, there are several key features that distinguish it from other economic systems. These features include:
1. Centralized Planning: The economy is centrally planned and controlled by the government or a central planning authority. This means that the government determines what goods and services are produced, how they are produced, and how they are distributed.
2. State Ownership: The means of production, including land, factories, and resources, are owned and controlled by the state or the community as a whole. Private ownership of productive assets is either limited or completely abolished.
3. Absence of Market Forces: In a planned economy, market forces such as supply and demand do not play a significant role in determining production and distribution. Instead, decisions are made based on the overall goals and priorities set by the central planning authority.
4. Equality and Social Justice: One of the main objectives of a planned economy in communism is to achieve social equality and justice. This means that resources are allocated based on the principle of "from each according to their ability, to each according to their needs," aiming to ensure that everyone's basic needs are met.
5. Elimination of Class Distinctions: Communism seeks to eliminate class distinctions and create a classless society. In a planned economy, this is achieved by reducing income inequalities and providing equal opportunities for all individuals.
6. Long-term Planning: Planning in a communist economy is typically focused on long-term goals rather than short-term gains. The central planning authority sets targets and objectives for the economy, which are often part of a comprehensive economic plan spanning several years.
7. Limited Consumer Choice: In a planned economy, consumer choice is often limited as the government determines what goods and services are produced and made available to the public. This can result in a narrower range of products and limited variety compared to market-based economies.
8. Emphasis on Public Welfare: The planned economy in communism places a strong emphasis on public welfare and collective well-being. The government aims to provide essential services such as healthcare, education, and housing to all citizens, ensuring that basic needs are met.
It is important to note that the implementation and characteristics of a planned economy in communism can vary across different countries and historical contexts.