Advantages of Economic Planning
The government can harness land, labor, and capital to serve the economic objectives of the state. Consumer demand can be restrained in favor of greater capital investment for economic development in a desired pattern. The state can begin building a heavy industry at once in an underdeveloped economy without waiting years for capital to accumulate through the expansion of light industry, and without reliance on external financing. This is what happened in the Soviet Union during the 1930s when the government forced the share of GNP dedicated to private consumption from eighty percent to fifty percent. As a result, the Soviet Union experienced massive growth in heavy industry.
The possibility of a digital planned economy was explored by Chile with the creation of Project Cybersyn, the project was a success in many ways but due to the lack of computer technology and need for constant human input was limited in comparison to modern and more advanced technology.
Read more about this topic: Planned Economy
Famous quotes containing the words advantages of, advantages, economic and/or planning:
“Can you conceive what it is to native-born American women citizens, accustomed to the advantages of our schools, our churches and the mingling of our social life, to ask over and over again for so simple a thing as that “we, the people,” should mean women as well as men; that our Constitution should mean exactly what it says?”
—Mary F. Eastman, U.S. suffragist. As quoted in History of Woman Suffrage, vol. 4 ch. 5, by Susan B. Anthony and Ida Husted Harper (1902)
“Can you conceive what it is to native-born American women citizens, accustomed to the advantages of our schools, our churches and the mingling of our social life, to ask over and over again for so simple a thing as that “we, the people,” should mean women as well as men; that our Constitution should mean exactly what it says?”
—Mary F. Eastman, U.S. suffragist. As quoted in History of Woman Suffrage, vol. 4 ch. 5, by Susan B. Anthony and Ida Husted Harper (1902)
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—Emma Goldman (1869–1940)
“In preparing for battle I have always found that plans are useless, but planning is indispensable.”
—Dwight D. Eisenhower (1890–1969)