Planned Economy

A planned economy is an economic system where the government or a central authority makes most of the decisions about what to produce, how to produce it, and for whom. This approach is often associated with socialism, which aims to distribute resources and wealth more equally among the population. In a planned economy, individual businesses may have less freedom to operate independently, as the state seeks to ensure that all needs are met and that there is stability, equity, and cooperation, rather than competition. This contrasts with market economies, where supply and demand drive decisions.