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The Planned Economy Vs. The Free Market Economy

392 words - 2 pages

The Planned Economy which is the economy that the government "organises" is very different from the Free Market Economy where the private sector is in charge and owns firms etc...The planned economy is better in the sense that people are less stressed due to not having to worry about their next meal or other, due to the government supplying their basic needs like housing, medical care, food, clothes, education, a job, so nobody is unemployed ...view middle of the document...

Meanwhile in the free market economy their are very poor people in the lower classes that have absolutely no food and could starve to death, and the very rich that are to involved in themselves that they do not care about others.but it is also better because their is freedom of expression. You also get paid according to how hard you try and the effort you put into things. Their is a better allocation of resources because each business or firm tries to allocate resources in a better way due to competition, trying to produce either more at a better quality for a lower price or just trying to be better than somebody else, and selling your better quality goods. This is good because their is a variety of choices and better quality good than their would be in a planned economy because in a planned economy everything is the same for everybody.I believe that the better economy is the Free Market Economy is more challenging.

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