One hundred fifty years ago, Karl Marx and Friedrich Engels published their classic masterpiece, The Communist Manifesto, in which they provoked the ideas of "centralization of credit in the hands of the State, by means of a national bank with State capital and an exclusive monopoly,"ÃÂ and "extension of factories and instruments of production owned by the State; the bringing into cultivation of wastelands, and the improvement of the soil generally in accordance with a common plan."ÃÂ In other words, they provoked an economic system that was based on the idea of central planning. Thus, their idea brings up an important issue, is economic central planning necessary? Some people believe that central planning, as an economic system is no longer workable or desirable. Others believe that central planning is a desirable model. Still others believe that some principles of central planning are worthwhile in certain circumstances. It is believed that although in some cases that central planning do indeed make the economic system less workable or desirable, some principles of central planning are necessary in certain circumstances.
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The Marriage of the Virgin (Raphael) showing the T...
The two major economic policy makers of the USSR, ...People usually need incentives to motivate them to do things that will bring them the most profit, and therefore they refuse to cooperate with the central planning system should the system conflicts with their own interests, which makes the central planning system fail in certain cases. Due to most men's selfish, evil nature, men usually don't know what is the best for the whole society; hence some principles of centrally planned economy are needed to help men to make some correct decisions. By balancing men's motivation to be productive with the principles of centrally planned economy, a desirable and workable economy system can be created in the modern world, therefore shows that economic central planning is not obsolete.
Central planning system fails...