What is the concept of planned economy in socialism?

Economics Socialism Questions



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What is the concept of planned economy in socialism?

The concept of a planned economy in socialism refers to an economic system where the government or a central planning authority controls and directs the allocation of resources, production, and distribution of goods and services. In a planned economy, the government sets production targets, determines prices, and decides on the allocation of resources based on the needs of society as a whole rather than individual profit motives. The goal is to achieve economic equality, social welfare, and the elimination of class distinctions.