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What are the effects of economic central planning on day to day lives?

  1. leroy64 profile image82
    leroy64posted 6 years ago

    What are the effects of economic central planning on day to day lives?

    What is the practical difference between a government with a centrally planned economy and an absolute monarchy?  I am assuming that a centrally planned economy requires a certain amount of centralized political power.

  2. Man from Modesto profile image83
    Man from Modestoposted 6 years ago

    As far as the central banks of today go, and the IMF in the planned global economy of the future:

    Our daily lives are less and less free. Look at the economic collapse of Argentina in recent decades. The banks were a major factor. When the nation began to struggle, interest rates averaging about 26% forced many small businesses to fail.

    Central banks are weapons against the common man.

    Notice also that the IMF requires nations to sell off major assets to private ownership before the nation can become member to the IMF.

  3. NotWiredThatWay profile image61
    NotWiredThatWayposted 6 years ago

    The way things are today, is their really a difference?  Either way government is manipulating the system, supposedly to "improve" the economy.  Doesn't look like it's working no matter who is pulling the strings and no matter on what shore you happen to wash up on.  Capitalist, Socialist, Communist, they all have major economic problems.  A central planned economy doesn't work.  At least not the way our country is running the show.  Gobble up bad debt?  Print more money?  What?

    A prime example is today's headline of the US bolstering Greece's financial woes.  I don't get it and I'll tell you why.  Below I've translated how I see the situation in layman's terms.

    A guy walks in to a bank and asks for a loan.  His credit is so bad he's on the verge of bankruptcy. (This would be Greece).  The guy has a long history with the bank and and up until his recent problems, was a very good customer, so the bank tells to the guy.  "You get someone in good standing to co-sign for you and we'll see what we can do about giving you a loan."

    So the guy comes back to the bank with his powerful friend (This would be the US).  The friend says he will co-sign the loan.  The bank checks out the friend and finds out that the friend (US) is in worse shape than the patron (Greece) who brought him into the bank.  The friend (US) dresses well, speaks well, and knows all the right things to say about money and investments but his accounts are nearly empty and what little he funds has are leveraged up to his eyeballs.

    The bank, being rational in this case, which is very rare.  Throws them both out.

    But as well all know in the real world, that is not what happened.  Sorry to have digressed.

  4. someonewhoknows profile image75
    someonewhoknowsposted 6 years ago

    They don't all operate quite the same.Some are monarchies ,some are not.The unitedstates federal government seems to belong to the corporations or foreign interests.Like Israel as well as Islamic nations.Including England

  5. profile image0
    Giselle Maineposted 6 years ago

    Theoretically there may not be vast amounts of difference.  But in practice, I would imagine that an absolute monarchy wouldn't be interested in strongly regulating the markets etc, whereas a centrally planned economy would (by definition).  So I think we would see more free trade and supply-and-demand in a monarchy, and more price-fixing, quotas and tariffs in a centrally planned economy.

  6. profile image49
    erivanposted 6 years ago

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