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What is the core of the traditional planned economic system?
The core of the planned economic system is the formulation and implementation of plan fixed. The micro-foundation of the planned economic system is an enterprise that does not distinguish between government and enterprises, has unclear property rights, does not operate independently, and is responsible for its own profits and losses, that is, an enterprise that only listens to its words and actions. Planned quotas are usually arranged according to macro-level priorities. Who ranks first, who ranks behind, who has more and who has less, is decided by the planning department, that is, the government departments at all levels that hold the distribution rights of people, money and materials. There is no definite objective standard for the arrangement of priorities, and the planning authority, which holds the power of distribution of people, money and materials, naturally becomes the master of the fate of enterprises and unemployed people.
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