Centrally Planned Economies Have Constituted Research Proposal

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Additionally, the price factor translates into the occurrence of unfriendly competition practices; the most relevant example in this sense is given by national industries benefiting from large subsidies, due to which they can sell their products at low prices. Foreign products from imports, limited as it is through various barriers, are unable to compete against the prices of national products. The last limitation is then that a centrally planned economy will generate disruptions in the country's international trade operations (Wilcznski, 2004).

2.3. Impact of Centrally Planned Economies upon Citizens

A first effect that can be felt by the communities refers to jobs. Provided that the central institutions are the ones deciding which industries and organizations to support, it is possible that jobs be created or reduced based on federal criteria and preferences. In the United States for instance, gambling is a billion dollar industry. A centralized system run by people of high morality standards might seek to reduce gambling activities and as such close casinos and cost the jobs of thousands of citizens.

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This very example leads to the second potential effect -- that of an interference in the social life and leisure activities of the citizens. By imposing censorship on certain aspects of the business life, such as gambling, the federal institutions have an increased ability to control the lives of citizens. A third effect upon the population is that the governments can stimulate or reduce consumption of a certain category of products or services (Sociology Guide, 2006).

3. Cited Works:

Wilcznski, J., Dumping in Trade between Market and Centrally Planned Economies, Economics of Planning, Vol. 6, No. 3, November 4, 2004

Features of Planned Economy, Sociology Guide, 2006, http://www.sociologyguide.com/economy-and-society/features-of-planned-economy.php last accessed on May 26, 2009

Planned Economy, Spiritus Tempori, 2005, http://www.spiritus-temporis.com/planned-economy/support-for-centrally-planned-economies.html last accessed on May 26, 2009

Planned Economy, The Free Dictionary, 2009, http://encyclopedia.farlex.com/Centrally+planned+economy last accessed on May….....

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