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ch year. These predictions will soon be five, who began as estimated not bind the economic activities in the future. This fact, however, changed very little in the first five year plan in 1928 marked the beginning of an economic central planning official the Soviet Union. Five-Year Plan trying to make a balance between demand and production, but was too optimistic and based on projected growth is not realistic. The main purpose of central planning in the United the achievements of Soviet five year plan in which state agencies perform.

Central economic planning as set in the Soviet Union and other communist countries has to depend, obedience and discipline on the part of individual supporters of the state. This choice is limited supply of goods and services and makes decisions about jobs, careers and work options

In communist Poland, for example, the role of trade unions has furthered the goal of production planning commission of the State. Also in this country, wages are not determined by collective bargaining or market demand, which is due to the central government without a plan in consultation with the union.

Central planning has failed for several reasons, including inefficient allocation of resources and labor, increasing the transmission of information agents distorted and selfish and down stairs, not valuation related costs, supply and demand and make inefficient administration of the different economic.

Central planning, however, is sometimes ruthlessly efficiency at micro level to channel scarce resources to economic imperative. A typical example of this is a country with an economy of war. Nylon, for example, is essential for production of even during World War II. Because the supply of this fabric was limited, the government planned to requisition all ready for production though nylon. This removes the future supply of all nylon, a product whose sole purpose is cosmetic and therefore entirely without any military value. This example also illustrates an essential characteristic of central planning and dependence of the price mechanism. The fact that a certain amount of nylon can be used to perform thousands of pairs of nylons thousands of dollars in revenue and only one worth even $25 is not related to the central planning agency.

'Savings certificate' is also a feature of the economy under central planning and are caused in part by the production of consumer goods marked by poor quality and lack of choice in cases this. Consumers often resort to overtime, the corruption and black market to meet their needs. Secondary economy provides the mechanisms needed to meet demand beyond frustrating, while the goals of central planning by transferring assets necessary for the so-called 'unproductive' use. Black market nylons use the previous example; find ways to satisfy consumer demand, but scarce resources move production out whether the request of the central government by the economy. Planning to determine the bid based on the needs and demands of government applications, which reflected in the asking price, has no effect on the supply line was established by the government.