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: Planisme
Famous quotes containing the words advantages of, advantages, economic and/or planning:
“To become aware in time when young of the advantages of age; to maintain the advantages of youth in old age: both are pure fortune.”
—Johann Wolfgang Von Goethe (1749–1832)
“If we help an educated man’s daughter to go to Cambridge are we not forcing her to think not about education but about war?—not how she can learn, but how she can fight in order that she might win the same advantages as her brothers?”
—Virginia Woolf (1882–1941)
“A two-parent family based on love and commitment can be a wonderful thing, but historically speaking the “two-parent paradigm” has left an extraordinary amount of room for economic inequality, violence and male dominance.”
—Stephanie Coontz (20th century)
“In the planning and designing of new communities, housing projects, and urban renewal, the planners both public and private, need to give explicit consideration to the kind of world that is being created for the children who will be growing up in these settings. Particular attention should be given to the opportunities which the environment presents or precludes for involvement of children with persons both older and younger than themselves.”
—Urie Bronfenbrenner (b. 1917)