Economic System
What to produce
- Determined by central authority or big organizations
How to produce
- Determined by central authority in state’s best interest
For whom to produce
- Determined by state authority The state acts like a motherland. it provides for all its citizens.
Specialties
- Individuals obliged to serve state
- Very low amount of consumer goods
- Everybody has a job
Planned Economy
Countries tried the planned economy, then ditched it. These include:
- Russia: 1917-1980. Lenin
- USA: 1932-1940. Franklin Roosevelt
- UK: 1939-1970.
- China: 1948-1980. Mao Zedong
- Cuba: 1957-Present All planned economies failed (except Cuba). Most of them transitioned to Mixed Market Economy