Characteristics of Planned Economic Systems Essays -

Characteristics of Planned Economic Systems An economic system is an organized way in which a state or nation allocates its resources and apportions goods and services in the national community. There are three types of economic systems namely the mixed economic system, free market system and the planned/command system. This paper aims to explain what a planned economic system is, the characteristics of the system and how resources are allocated within the system. A planned economy is an economic system in which factors of production are owned and managed by the government. Therefore, the government decides what to produce, how much to produce and for whom to produce. Although, a planned economy may be based on either centralized or decentralized forms of economic planning, it usually refers to a centrally planned economy. The aim of central planning is to improve productivity and coordination by enabling the government to take advantage of information achieved through the consolidation of economic resources, such as capital, land and labour, when making decisions regarding investment and the allocation of economic inputs. Examples of countries that execute planned economic systems include Cuba, China, North Korea and Iran. In a planned economy all resources are owned and managed by the government. Therefore, there is no private sector to contribute to production, investment and the overall growth in the nations economy. Another characteristic of a planned economy is that there is no consumer or producer sovereignty. Consumer sovereignty refers to the ability and freedom of consumers to choose from a variety of goods and services while producer sovereignty refers to a firms power and ability to influence consumer decisions (Pettinger, 2008). It is because of this lack of ownership of resources and sovereignty that market forces are not allowed to set the price of goods and services produced. Unlike in the mixed or free market economic systems, the main objective of the planned economic system is to ensure that goods and services are provided to the entire population; not to gain profits. It is because of this that in a mixed economy there is no inflation because all prices are fixed by the government. All economic systems must answer three main economic questions: what is to be produced, how it will be produced and who will get what is produced. In a planned economy, these questions are answered through central planning. It is through central planning that the government is able to identify what goods and services are needed to satisfy the need of the society, how these goods and services are going to be produced and how they are to be distributed. Once these questions have been answered, the government sets forth to implement these answers. Firms concerned with production such as factories, farms and so on are given directives as to what and how much they are to produce and are expected to reach their targets. The government ensures that these firms are given adequate capital to ensure that the needed amount of a good or service is produced efficiently. Once goods and services are produced, the government must then decide who gets what. In a planned economy, the government looks at several factors when deciding how to distribute goods and service. The main factor pertaining to how goods and services is that of equality. The government ensures that all goods and services are allocated in a way that ensures that all persons needs are satisfied. These needs include housing, food, health care and education. In special cases, such as one family being bigger than another, some persons may be receive more resources than others. Reference Bized (2006, December 25). Biz/ed - Economics Notes - Economic Systems | Biz/ed. Retrieved February 25, 2014, from http://www.bized.co.uk/learn/economics/notes/systems.htm Pettinger, T. (2008, November 10). Producer and Consumer Sovereignty | Economics Help. Retrieved February 25, 2014, from http://www.economicshelp.org/blog/917/economics/producer-and-consumer-sovereignty/ WebFinance (2014). What is economic system? definition and meaning. Retrieved February 25, 2014, from http://www.businessdictionary.com/definition/economic-system.html#ixzz2taqoxKTb

A Comparison of Freud and Fromm essays

A Comparison of Freud and Fromm essays Sigmund Freud was born in Monrovia on May 6,1856. He entered the University of Vienna in 1873 at the age of 17. He finished his degree in 1881. Freud died in England in 1939. He was an active therapist, theorist and writer to the very end. ( Ewen 19-20) Erich Fromm was born four years after Freud in 1900 in Frankfurt, Germany. Unlike Freud, Fromm had no medical training in his background. He received his PHD from the University of Heidelberg and later studied at Berlin Psychoanalytic Institute. Erich Fromm died March 16, 1980 in Switzerland. (Ewen 187) While Freud and Fromm were contemporaries and shared some basic beliefs, their approach to most issues varied greatly. Freuds attitude was purely scientific. Fromm desired to humanize things. Fromm accepted the importance of unconscious, biological drives, repression and defense mechanisms, but rejected Freuds theory of id, ego and superego. Fromm did not believe in specific developmental stages. He believed that the growing child slowly learns to distinguish between I and not I, through contact with the environment, notably those involving the parents.(Ewen 194) Fromm contends that personality development continues into adulthood. He believes that if a child keeps up with the increasing feelings of isolation, that anxiety can be kept to a minimal and personality development proceeds normally. Freuds well-known theory is that the personality is determined during the first five years of life. He believes we proceed through a series of psychosexual stages: oral, anal, urethral, phallic, a latency period and genital. Freud contends that the genital stage is the goal of normal development and that it represents true maturity. ( Hansen 25-26) Fromm warns against pathogenic behavior because it can damage the childs sense of reliance. He believed healthy pers...

Negotiation & Conflict Resolution Essay Example | Topics and Well Written Essays - 1750 words

Negotiation & Conflict Resolution - Essay Example One recent instance of conflict and negotiation in the political world is the partial shutdown of the US government. The conflict originated from lack of consensus on political issues but wrecked not only the political but also the social and economic fabric of the US. The primary parties to this conflict were President Obama with the Democrats on one side and the Republican House of Representatives on the other side. The issue arose on October 1, 2013 during a budget discussion session in the Congress due to a disagreement over a particular healthcare reform law. The Republicans were not in favor of passing the reformed healthcare law and looked forward to a delay or repeal in the legislation. But President Obama strictly asserted that he wanted the bill to be passed clean and without any amendments or unnecessary delays. The resulting concord between the parties led the Republicans to declare a partial shutdown of the government operations in the US. This primary issue of the healt hcare reform bill further got entangled with another vital issue regarding the debt ceiling for government borrowings. Obama requested a relaxation of the debt ceiling as the deadline for the same was approaching soon, i.e. on October 17, 2013. Not extending the debt limit would lead to a fiscal impasse as the nation will be unable to repay its debts and clear its bills. This would affect not only the US economy but also the global economy and the secondary parties such as the financial agencies, stock markets, federal workers and general public. The 16-day-long impasse in the US was primarily born out of a policy deadlock over the spending bill in the government budget. President Obama had suggested the inclusion of a healthcare reform law, Affordable Care Act, which offers a range of healthcare and welfare facilities for the US citizens. But the Republican-led House of Representatives refused to pass it and showed intentions to repeal or delay it by the span of a year. They called for a House-Senate Conference Committee to resolve the matter. But the Democrats refused to this idea, saying that the House was just trying to defer the new healthcare law using the pretext of the budget process. Owing to this unresolved conflict, the House declared a partial shutdown of the government on October 1. While the Republicans insisted on a delay in the implementation of the healthcare reform, Obama remained immovable on his stance that â€Å"Obamacare† is non-negotiable and that he wanted a â€Å"clean bill† devoid of any conditions or amendments. (CNBC, 2013) This shutdown very soon raised an alarm amongst the secondary parties to the conflict. Wall Street officials expressed their concern over the present shutdown and the future prospect of a financial default. The US government was fast approaching its debt ceiling of $ 16.7 trillion which it was about to hit on October 17 (Jackson, 2013). James Clapper, Director of the US National Intelligence, shared with the media his grave fears regarding the severe impact of the shutdown on their ability â€Å"to support the military, to support diplomacy, and to support the policymakers.† (Cornwell, 2013). Owing to the shutdown, 70% of the federal intelligence personnel had been sent on unpaid leave. Lloyd Blankfein, Chairman and CEO of the Goldman Sachs Group, apprehended over the aligned and perhaps more critical issue of a financial default arising from the shutdown. Saying that America had seen a precedent