Editing Planned economy (section)

===Command economy===
Planned economies contrast with command economies in that a planned economy is "an economic system in which the government controls and regulates production, distribution, prices, etc."<ref name="reference1">[http://dictionary.reference.com/browse/planned%20economy "Planned economy"] {{Webarchive|url=https://web.archive.org/web/20070228020932/http://dictionary.reference.com/browse/planned%20economy |date=2007-02-28 }}. Dictionary.com. Unabridged (v. 1.1). Random House, Inc. Retrieved 11 May 2008).</ref> whereas a command economy necessarily has substantial public ownership of industry while also having this type of regulation.<ref name="autogenerated1">[http://www.m-w.com/dictionary/command%20economy "Command economy"] {{Webarchive|url=https://web.archive.org/web/20070124123940/http://www.m-w.com/dictionary/command%20economy |date=2007-01-24 }}. ''Merriam-Webster Online Dictionary''. Retrieved 11 May 2008.</ref> In command economies, important allocation decisions are made by government authorities and are imposed by law.<ref>{{cite book|title=Comparative Economics in a Transforming World Economy|last1=Rosser|first1=Mariana V.|last2=Rosser|first2=J. Barkley|date= 2003|publisher=MIT Press|isbn=978-0-262-18234-8|page=7|quote=In a command economy the most important allocation decisions are made by government authorities and are imposed by law.}}</ref>

This is contested by some [[Marxist]]s.<ref name=":0" /><ref>Schweickart, David; Lawler, James; Ticktin, Hillel; Ollman, Bertell (1998). "Definitions of Market and Socialism". ''Market Socialism: The Debate Among Socialists''. New York: Routledge. pp. 58–59. {{ISBN|978-0-415-91967-8}}. "For an Anti-Stalinist Marxist, socialism is defined by the degree to which the society is planned. Planning here is understood as the conscious regulation of society by the associated producers themselves. Put it differently, the control over the surplus product rests with the majority of the population through a resolutely democratic process. [...] The sale of labour power is abolished and labour necessarily becomes creative. Everyone participates in running their institutions and society as a whole. No one controls anyone else."</ref> [[Decentralized planning]] has been proposed as a basis for [[socialism]] and has been variously advocated by [[anarchists]], [[council communists]], [[libertarian Marxists]] and other [[Democratic socialism|democratic]] and [[Libertarian socialism|libertarian]] socialists who advocate a non-market form of socialism, in total rejection of the type of planning adopted in the [[economy of the Soviet Union]].<ref>Schweickart, David (2007). [http://orion.it.luc.edu/~dschwei/demsoc.htm "Democratic Socialism"]. In Anderson, Gary L.; Herr, Kathryn G., eds. ''Encyclopedia of Activism and Social Justice''. Sage Publications. p. 448. {{ISBN|978-1452265650}}. {{webarchive|url=https://web.archive.org/web/20120617235335/http://orion.it.luc.edu/~dschwei/demsoc.htm|date=17 June 2012}}. Retrieved 6 August 2020. "Virtually all socialists have distanced themselves from the economic model long synonymous with ''socialism'' (i.e., the Soviet model of a nonmarket, centrally planned economy. [...] Some have endorsed the concept of ''market socialism'', a postcapitalist economy that retains market competition but socializes the means of production and, in some versions, extends democracy to the workplace. Some hold out for a nonmarket, participatory economy. All democratic socialists agree on the need for a democratic alternative to capitalism".</ref>

Most of a command economy is organized in a top-down administrative model by a central authority, where decisions regarding investment and production output requirements are decided upon at the top in the [[command hierarchy|chain of command]], with little input from lower levels. Advocates of economic planning have sometimes been staunch critics of these command economies. [[Leon Trotsky]] believed that those at the top of the chain of command, regardless of their intellectual capacity, operated without the input and participation of the millions of people who participate in the economy and who understand/respond to local conditions and changes in the economy. Therefore, they would be unable to effectively coordinate all economic activity.<ref name=":4">{{cite book|title=Writings 1932–33|page=96|first=Leon|last=Trotsky}}</ref>

Historians have associated planned economies with [[Marxist–Leninist state]]s and the [[Soviet-type economic planning|Soviet economic model]]. Since the 1980s, it has been contested that the Soviet economic model did not actually constitute a planned economy in that a comprehensive and binding plan did not guide production and investment.<ref>{{cite journal|last=Wilhelm|first=John Howard|year=1985|title=The Soviet Union Has an Administered, Not a Planned, Economy|journal=[[Europe-Asia Studies|Soviet Studies]]|volume=37|issue=1|pages=118–130|doi=10.1080/09668138508411571}}</ref> The further distinction of an [[administrative-command system]] emerged as a new designation in some academic circles for the economic system that existed in the former [[Soviet Union]] and [[Eastern Bloc]], highlighting the role of centralized hierarchical decision-making in the absence of popular control over the economy.<ref name="The Rise and Fall of Socialist Planning">{{cite book|last=Ellman|first=Michael|chapter=The Rise and Fall of Socialist Planning|title=Transition and Beyond: Essays in Honour of Mario Nuti|editor1-first= Saul|editor1-last=Estrin|editor2-first=Grzegorz W.|editor2-last=Kołodko|editor3-first=Milica|editor3-last=Uvalić|location= New York|publisher= Palgrave Macmillan|year=2007|isbn=978-0-230-54697-4|page=22|quote=Realization of these facts led in the 1970s and 1980s to the development of new terms to describe what had previously been (and still were in United Nations publications) referred to as the 'centrally planned economies'. In the USSR in the late 1980s the system was normally referred to as the 'administrative-command' economy. What was fundamental to this system was not the plan but the role of administrative hierarchies at all levels of decision making; the absence of control over decision making by the population [...].}}</ref> The possibility of a digital planned economy was explored in Chile between 1971 and 1973 with the development of [[Project Cybersyn]] and by [[Aleksandr Aleksandrovich Kharkevich]], head of the Department of Technical Physics in Kiev in 1962.<ref>[http://csef.ru/en/politica-i-geopolitica/223/mashiny-kommunizma-pochemu-v-sssr-tak-i-ne-sozdali-svoj-internet-6983 "Machine of communism. Why the USSR did not create the Internet"] {{Webarchive|url=https://web.archive.org/web/20220308013038/http://csef.ru/en/politica-i-geopolitica/223/mashiny-kommunizma-pochemu-v-sssr-tak-i-ne-sozdali-svoj-internet-6983 |date=2022-03-08 }}.</ref><ref>{{cite book|last1= Kharkevich|first1= Aleksandr Aleksandrovich|title=Theory of information. The identification of the images. Selected works in three volumes. Volume 3|date= 1973|publisher= Moscow: Publishing House "Nauka", 1973. – Academy of Sciences of the USSR. Institute of information transmission problems|location=Information and technology|page=524}}</ref>

While both economic planning and a planned economy can be either authoritarian or [[Economic democracy|democratic]] and [[Participatory economics|participatory]], [[democratic socialist]] critics argue that command economies under modern-day communism is highly undemocratic and totalitarian in practice.<ref>Busky, Donald F. (2000). ''Democratic Socialism: A Global Survey''. Praeger. pp. 7–8. {{ISBN|978-0275968861}}. "Sometimes simply called socialism, more often than not, the adjective ''democratic'' is added by democratic socialists to attempt to distinguish themselves from Communists who also call themselves socialists. All but communists, or more accurately, Marxist-Leninists, believe that modern-day communism is highly undemocratic and totalitarian in practice, and democratic socialists wish to emphasise by their name that they disagree strongly with the Marxist-Leninist brand of socialism."</ref><ref>Prychito, David L. (2002). ''Markets, Planning, and Democracy: Essays After the Collapse of Communism''. Edward Elgar Publishing. p. 72. {{ISBN|978-1840645194}}. "It is perhaps less clearly understood that advocates of democratic socialism (who are committed to socialism in the above sense but opposed to Stalinist-style command planning) advocate a decentralized socialism, whereby the planning process itself (the integration of all productive units into one huge organisation) would follow the workers' self-management principle."</ref> [[Indicative planning]] is a form of economic planning in market economies that directs the economy through incentive-based methods. Economic planning can be practiced in a decentralized manner through different government authorities. In some predominantly market-oriented and Western mixed economies, the state utilizes economic planning in strategic industries such as the aerospace industry. Mixed economies usually employ [[macroeconomic]] planning while micro-economic affairs are left to the market and price system.