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Is there no unemployment in a centrally planned economy?

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How centrally planned economies succeed at lowering or eliminating unemployment completely, and the ways in which this seeks to benefit economic inclusivity and participation from all of society.

There is definitely no unemployment in a centrally planned economy. This is one of the advantages of such an economy. A centrally planned economy, also known as a command economy, is an economic system in which a central authority, like the government, solely makes decisions related to the manufacturing and distribution of products and resources.

Most assets are owned by the state in this type of economy, but one of the biggest advantages of this is that there is no unemployment and people’s needs are never not met. This is because governments leading centrally planned economies know the costs of living.

Such governments know the costs of food, medicines and other goods, and ensure that it produces enough for all. Since a centrally planned economy seeks to achieve the complete control of their economies, it will ensure that no one is left behind as it works to be somewhat inclusive. The reason as to why centrally planned economies, when done right, could experience low or even no unemployment could be attributed to the fact that governments or authorities in control of resources would, by all means, work to ensure people have no reason to not feel included in economic activities.

It would not make sense for centrally planned economies to not be inclusive of everyone, and yet still want to be in control of the economy of the majority at large. This would be deemed as unfair and limiting on the ways in which people could live and afford economic participation.

Centrally planned economies are therefore in favour of the people and inclusivity. They are economies that serve to function in the best interests of society at large, and guarantee the security of participants within these economies in order for all to reap the benefits, not only the authorities or governments.

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