1. INT 200: Global Capitalism and its Discontents
Central Planning

2. Central Planning Socialism Communism
social and economic doctrine that calls for public rather than private ownership or control of property and natural resources
Communism
the political and economic doctrine that aims to replace private property and a profit-based economy with public ownership and communal control of at least the major means of production and the natural resources of a society

4. Central Planning The Realities of Soviet Communism
the Bolshevik leaders viewed themselves as the executors of the Marxist program
“all products were to be delivered to communal warehouses, and the members of society would draw them out in accordance with their self-defined needs”
Bukharin: “Proletarian coercion, in all its forms, from executions to forced labor, is, paradoxical as it may sound, the method of molding communist humanity out of the human material of the capitalist period.”
Lenin: the "dictatorship of the proletariat"
the vanguard party could initiate policies in the name of the working class even if the working class did not support them, since the vanguard party would know what was best for the workers
nationalized industry and established a foreign-trade monopoly to allow the productive co-ordination of the national economy; no competition

5. Central Planning The Realities of Soviet Communism
before he died, Lenin warned that Stalin has “unlimited authority concentrated in his hands, and I am not sure whether he will always be capable of using that authority with sufficient caution”
Stalin: a “second revolution” with the introduction of state socialism and central planning
state ownership of the means of production and centralized planning, along with bureaucratic management of the workplace by state officials that were ultimately subordinate to the all-encompassing communist party
The increasing bureaucracy was at complete odds with the Marxist notion of "the withering away of the state”

6. Central Planning Command Economy or Centrally Planned Economy
Economic system in which the means of production are publicly owned and economic activity is controlled by a central authority
the total direction and development of a nation's economy is planned and administered by its government: government control of production, distribution, and consumption
Prices are also set by the central planners
But used mainly as instruments of the central planners in their efforts to reconcile the total demand for consumer goods with the supply available, allowing also for revenues to the state

7. Central Planning Command Economy or Centrally Planned Economy
Advantages
harness land, labor, and capital to serve the economic objectives of the state
consumer demand can be restrained in favor of greater capital investment for economic development
Disadvantages
Inefficient resource distribution
Suppression of economic democracy and self-management
Economic Instability
Authoritarian
Shadow economy
The End of the Soviet Union
The Era of Stagnation
Turn to capitalism and democracy