What are the advantages and disadvantages of planned economy? Are there planned economies in western countries?

Planned economy can consciously maintain the coordination of the main proportions of the national economy, so that social reproduction can develop continuously and rapidly at a low proportion. As we all know, China's socialist construction is not based on highly developed capitalism, but has started economic and cultural development on the basis of extremely backward semi-colonial and semi-feudal society. Under the leadership of the production party of China, relying on the superiority of the planned economy system, China's national economy developed rapidly, changed the backward national economic structure of old China, and established an independent and relatively complete national economic system. Old China was basically an agricultural country with backward industries, especially basic industries. After more than 30 years of construction, this situation has undergone fundamental changes, especially the basic industries on which China's economy depends have developed rapidly. It should be pointed out that under the planned economy system, even if this ratio is temporarily out of balance due to work mistakes, it can be consciously adjusted.

Planned economy can make rational use of human, material, financial and natural resources. Under the condition of socialist planned economy, social production is carried out according to plan and proportion. This in itself means the most reasonable and effective use of human, material, financial and natural resources, as well as the greatest social savings. Planned economy can scientifically predict the future economic process and consciously determine social demand and social production to achieve balance. This social production consciously carried out according to social needs, on the whole, avoids the waste caused by insufficient production or overproduction. Planned economy can reasonably arrange production, implement regional division of labor and cooperation, and give full play to their respective advantages from the perspective of national economy.

At the same time, the planned economy can establish the production structure and technical structure suitable for the national conditions. For example, according to the characteristics of China's large population, little arable land and weak economic foundation, we can better develop and utilize extremely rich natural and labor resources by establishing a reasonable production structure and technical structure. Planned economy has opened up a broad road for people to make full use of their abilities, materials and talents. Of course, this does not mean that waste under the planned economy has been eradicated. Judging from the situation in our country, waste still exists, and some are still very serious. But the source of waste is different from capitalism. At the same time, planned economy itself has the ability to overcome waste. With the improvement of the overall economic management level, waste can be gradually overcome.

Western countries have a planned economy. Like Keynes, the planned economy had an impact on economic development at a certain stage. The basic idea of government as the leading force of economic regulation is no longer recognized, which leads to the information island of government decision-making failure, and there is no real reason to provide decision makers with the role of government in modern economic development. I think the biggest problem of planned economy is to hinder innovation. Planned economy will dampen personal enthusiasm.