As you might imagine, a centrally planned economy is one where the government plans everything related to the economy of the nation. In a very loosely centrally planned economy, this will include the government becoming a partner of the key businesses in the country. In a very tightly centralized economy, each individual’s occupation is chosen by the government. The question we will answer in this article is; can a person become successful in a country whose government centrally plans the economy?
The way the Soviet Union operated was it controlled everything and all the people in the country, entirely. Not only did the government control all business activities but it also controlled people to the point where it told them what jobs they would fill. In this system, no one was allowed to have any aspirations. It is easy to see, a tightly controlled centralized economy does not allow ordinary folk freedom of any kind.
Another type of similar government is fascism. In fascism, the government controls all industry. In other words, the government is the corporations and the dictators of the government are the CEOs of these corporations. In a non-fascist, loosely controlled centrally planned economy, businesses do exist but the government oversees them and persuades them to do what it wants them to do by giving them tax breaks and punishing them if they do not follow certain regulations. In a tightly controlled centralized economy the government controls business simply by using brute force.
The most important thing to realize about tightly controlled economies is they leave no room for individual freedom. If individuals were free, they could potentially cause a problem for the government because they may assemble and voice their grievances against the government. This would mean the government would have to shut these people up in one way or another or risk losing control over the entire population.
An economy where individuals are free to invest and strive for success is called a free market economy. Only in a free market economy are all people not only allowed but encouraged to become successful. In such an economy, a person is allowed to succeed or fail without government interference. If a person fails, he or she can try again. In this system, many success stories have been written and usually mainstays of such stories are perseverance and belief, whether this belief is in one’s self or a higher power. Having the right to fail is part of living in a free nation.
Living without freedom and without the right to a say how the government will treat its people is living under tyranny. Tyrannical governments and centrally controlled economies go hand-in-hand. In fact, a problem we all should be aware of is the fact tyranny can spring up in any country. It can start when the government tries to control some of its industry, even if it does so without using threat of force. Another sign would be if the country’s leaders openly voiced objection to any group or faction of law abiding citizens.
It is for this reason, we in the United States of America must insist our government treat all of its citizens the same. We must strive for true equality. Rich and poor should pay the same rate of tax. Everyone’s religious rights should be respected and there should be no corporations receiving special favors.
In a truly free nation, the government would not treat any member of any political party, whether Democrat, Republican, Federalist, Whig or Tea, any differently. If the government of a nation were to try to stifle one particular faction from voicing its grievances, it would be very troubling. Of course, this would never happen in the United States; would it?
The point is, a centrally planned economy is not consistent with a free country. Likewise, freedom and opportunity go hand-in-hand. To the extent one exists, so does the other. It is for this reason all freedom loving people, by nature, reject centralized economies.