Childworld travel – planned economy

Childworld travel - planned economy

lexicon

Back planned economy

What is a planned economy? And what do umbrellas have to do with it??

Everyone will hopefully get an umbrella. [© pixabay.com]

Planned economy – simply explained

In communism and socialism, the economy is planned. But what exactly does that mean and who plans? In a planned economy – For example, the government also specifies exactly how many umbrellas are to be produced per year. There are strict specifications that the manufacturers of umbrellas have to comply with.

In a year in which it rains little, now almost no umbrellas are sold. Of course this is stupid for the manufacturers, because they had the requirement to produce a certain amount of umbrellas. They unfortunately remain sitting on their umbrellas. So the next year’s target is to produce less umbrella. Unfortunately, it is raining a lot this year. Now too few umbrellas are made. There is a lack of umbrellas.

In a free-market economy, supply and demand are geared to each other – more or less umbrellas are produced, as the case may be. [© pixabay.com]

Planned economy against market economy

In a market economy On the other hand, one would have oriented oneself to the needs of the people. In a year when there was more demand, more would have been produced, and fewer umbrellas would have been produced in a year of lower demand. It is therefore based on supply and demand.

If too few umbrellas had been available on the market, the consumer would have had to pay much more. The factory owner can decide for himself how many umbrellas are made and at what price they are sold. In a planned economy people would have to wait until the specifications change.

What was the basic idea of ​​the planned economy??

If the plan did not work, people were queuing up for certain products. This photo was taken in Poland in the 1980s. [© public domain]

The basic idea was at the planned economy, that nobody should have more or less. All people should be treated the same and be the same. So everyone should actually own only an umbrella. But in the worst case, the umbrellas were not enough, and some had no umbrella. Those who over the planned economy certain, but had certainly put aside a screen once before. In the end, the people in the planned economy did not have everything and were not the same.

Incidentally, there was one in the former GDR as well planned economy. That was a socialist planned economy. How that looked exactly, you can learn by time clicks. Incidentally, there are only a few countries that are based on the planned economy. So there are z. In North Korea, for example, there is still a planned economy. There, the state specifies exactly what is produced and how often and at what price.

What is social market economy?

In the social market economy The state intervenes in the events by regulating certain things. For example, an employer can not easily dismiss an employee without a reason, the legislature determines. And that’s what employers have to do in a social market economy. The rights of weaker people are protected, so there are e.g. a protection for mothers who are no longer allowed to perform certain work or who are better protected against dismissal.

There are also rules for certain contracts. The idea of ​​the social market economy is to act on the one hand economically successful, but also to protect the citizens socially at the same time.

Related Posts

Like this post? Please share to your friends:
Christina Cherry
Leave a Reply

;-) :| :x :twisted: :smile: :shock: :sad: :roll: :razz: :oops: :o :mrgreen: :lol: :idea: :grin: :evil: :cry: :cool: :arrow: :???: :?: :!: