Image by Patryk Grądys

Central Planning

 

Central planning is when a large, powerful, and centralized government determines the strategy, objectives, as well as resource distribution and development of the economy and/or society. 

 

Progressivism, Socialism, and Communism are examples of systems of government that operate based on central planning.​

Central planning is the opposite of the Free Market, Market EconomicsCapitalism, and Americanism.

 

Example:

 

The Union of Soviet Socialist Republics (U.S.S.R.) attempted to control their economy through a large centralized government because the Communists and Socialists claimed to believe that central planning produced a better, fairer, and more stable economy.