Obvious Things About Planned Economy

Saturday , 24, May 2014 Leave a comment

Stability- Command economies are less influenced by economic fluctuations since the items and the resources made use of in their production are in stable demand as opposed to the continuous state of flux that prevails in a market system.

Stable joblessness- The rate of unemployment is static as a result of lack fluctuation in the system.

The felling of the Berlin Wall exposed the devastating results of a centrally regulated economy. West Germany is simply now recovering from cleaning up the years of human and economic damage left in the wake of the command economy that when mired East Germany in a quagmire of economic decay and human demoralization. Till recently the United States have experienced a free market economy that resulted in a prolonged period of economic growth. Although the American public has actually succeeded financially as a result of free market policy and can readily see the advantages of a free-market system as compared to the failures of a controlled economy, it has actually been duped by the existing administration and its coterie of muckrakers and goons into accepting a command economy.

To be considered….

The central tenet identifying the success or failure of a command economy is control of all means of production, including those peripheral sources which supply cradle to serious support of the production process. The Obama administration has actually prospered in making all means of production under the province of the federal government through the automobile called The Economic Stimulus Package. The peripheral resources supporting such means of production have not been positioned under direct government control. It is for that reason required to identify the peripheral forces to which I reveal and refer how those forces are incrementally being brought under direct government control, thus completing the circle that closes the noose around all means of production and the peripheral forces supporting it thus transitioning America’s economy far from its existing rented for viewpoint to the shackles of a command economy.

Furthermore…

Three separate forces are represented within the cradle to serious principle supporting the process of production within a control or command economy. They are: Planners (Government), Laborers, and Consumers.

In his 1660 treatise Leviathan, Thomas Hobbes explains the need for a strong state to avoid civil discord. In a command or control economy the government dictates the plan of production of items. In order for an efficient planner to exist, it is incumbent that government be of large scale and power. Additionally, such entity must keep the latitude to expand its scope and power in order to prevent any deviation from the plan which offers stabilization for the economy and its supporting cast.

If a product is to be made, it has to have somebody produce it. , if labor is not supplied in the numbers and with the education needed to produce the food in question the grand plan fails.. With that in mind one ought to be cognizant of 16th century British Philosopher Francis Bacon’s observations on education. Balkan states that a government will supply just the type of education essential to preserve itself. While education represents a major aspect upon which the success of an economy hinges it can be argued that society has to satisfy the fundamental needs stood for on Maslow’s Hierarchy of Needs. The bottom level of the pyramid this theory creates is physiological needs, food, beverage and so forth. Second comes the level of safety that includes security of: body, health, employment, property… Any failure to supply the basic necessities will lead to failure to effectively perform the planner’s determines. A good example of the desire to supply the needs represented on the lower 2 levels of Maslow’s hierarchy is the utopian socialist approach espoused by the likes of Charles Fourier and his concept of developing social communities he called Phalanxes. Taking an example from Fourier, numerous American entrepreneurs throughout America’s commercial revolution constructed utopian communities based around their companies wishing to provide their staff members with the basic necessities of life therefore enhancing their performance. An example of this sensation is the community established in 1880 by American industrialist George Pullman. The company town of Pullman was found simply south of Chicago and was centered on the production of railway vehicles. It was Pullman’s hope that this community would be a shining example of how market and labor might cooperate in order that the company would operate more efficiently. The community of Pullman, like a lot of such communities, failed. A more current example of the desire to offer the basic necessities which Maslow refers is the well-being state created by Franklin Roosevelt’s New Deal.

In a down or slow economy where the level of competition decreases it is a wonderful opportunity for smaller sized businesses to market much more to draw the attention of possible consumers in the direction of their items. Market your product and supply your service as it reveals that it will satisfy all the need and need of the consumers. This would lead to new consumers as they will find worth spending in your product.

When the economy is excellent, Marketing plays a really vital function in a down economy as much as it plays. As an appropriate marketing will make your items popular among the consumers and they will spend the cash to buy your product. A well planned and an excellent approach can help in growing your company even in a down economy.

The last force in the 3 part equation is Consumers. In a planned economy it is presumed that government, workers, and consumers all have an usual interest. Conversely, in a market driven society, consumers are thinking about as looking out for their benefit. In a free-market economy, business community spends inflated amounts of money year in an effort to determine what consumers really want in order that they might realize a revenue by supplying consumers with the services they require. On the other hand, in a command economy the planner tells the customer that he will accept the product he is provided or go without as there is no other providing and no means of getting the service he looks for unless he goes outside of the system to get that which he desires. A prime example of this principle has stood for by the huge proportion of Canadian citizens who every year go across the U.S. border in quest of healthcare services not easily offered in Canada’s rationed health care system. In such a central command economy only a restricted supply of one design of a product is provided therefore rendering the idea of exactly what is in the best interest of the customer moot.

Eventually the American people have to decide if they wish to remain to take pleasure in the advantages of a market driven lose for economy or select the false security and government control provided by a command economy and the despotic dictator proposing the creation of a draconian corollary to the New Deal.

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