Define Equitable Distribution & Right Decisions

Equitable Distribution

Equitable distribution of wealth Economic planning is also important for a country because if the distribution of wealth there is unfair, it can be easily remedied. It has often been observed that in developing countries, national wealth or production is controlled by a few families. This rich class gets richer over time and the poor get poorer. The problem of unjust distribution of wealth cannot be solved by handing over the market system to the automatic forces of supply and demand. On the contrary, experts say that the unfair distribution of wealth is a logical requirement of the capitalist system. ۔ In view of humanitarian and national requirements, it is imperative that the government address the issue. The government can bridge the gap between the two classes by changing the tax system as planned to benefit the poor more.

Improving balance of Payments

The plan can also be used to improve the country's balance of payments. Most developing countries suffer from high imports and low exports. Even in invisible accounts, the country's receipts are low and liabilities are high. The payment of such an unfavorable balance cannot be corrected by the supply and demand forces of the market. Government intervention is needed to tackle such an important issue. The government can improve the balance of payments by immediately banning imports under the plan, promoting exports, and developing import alternatives domestically. In most cases, governments reformed the balance of payments under a non-trade policy.

Rights Care

The private sector, motivated by self-interest, does not shy away from exploiting workers. If the entire task of economic development of the country is left to the forces of the open market, then exploitation will intensify. Exploitation makes the distribution of wealth unfair. The private sector does not take any steps to end self-exploitation, unless the government raises the minimum wage in the planning category. In addition to not enforcing the law, in the event of a global recession, the government plans to protect workers' rights by providing them with an unemployment alliance. Even in cases of lockout, the government intervenes through inspection boards and tries to give workers their due rights.

Right Decisions

Government resources are more abundant than any individual or group. The sector does not have the capacity to make better decisions about investment, savings, industrialization or education. The government plans with the help of experts and the far-sighted expert decisions it makes cannot be expected from the private sector. Because the government's focus is on the national interest rather than the individual, and its focus is on future generations rather than the present, its decisions are more useful, efficient, late or even wise. Effective planning is needed to make wise decisions. Most experts, citing wise decisions in justifying planning, give the example that a soldier on a hill can look farther than a line of soldiers on a field.

Harmony

Every member of the capitalist system can move freely in the context of economic struggle. Sometimes it happens that people start doing the same thing and invest in the same sector unnecessarily. Excessive investment affects the performance of this sector while other sectors remain thirsty. The price mechanism is unable to rectify this awkward situation on its own. To combat this chaos and disorder, planning is needed to prevent unnecessary expenditure of capital. Coherence, unity and order in the economic struggle are, in fact, due to economic planning. In order to discourage the trend of indiscriminate investment in unnecessary and unnecessary sectors, it is necessary to plan all sectors of the economy. Program adaptations are very useful in terms of connecting sectors, coordinating projects, and collaborating on economic outcomes.

Multi-investment

Economic growth depends on the provision of capital. The economic struggle is green every year and every year leads to an increase in investment. If the economic struggle is left open, the common people will sacrifice the new capital they create every year for personal gain or luxury, which is not the case under the plan. The new capital that is created each new year can be snatched away by the government in the form of taxes or loans. Under the plan, the transfer of new capital from individuals to state ownership is also considered a welcome step. The capital raised by the government can be used for further investment. Thus, thanks to the abundant supply of capital, the rate of economic growth is already higher, which is said to be beneficial for both the individual and the nation.

Get rid of the flaws of non-competition

One of the benefits of planning is that it provides a way out of the competition. The peculiarity of non-match competition is that the moderators unnecessarily spend a lot of money, patties and advertisements to sell more or less the same items. The need for planning is also felt in order to get rid of these huge expenses. The government can set the price of these items under the plan, set a spending limit on advertising, and set aside a certain amount of time for advertising on radio and television. In this way, companies that avoid advertising can use the money to improve their productivity.

Mixed Economy

For the above reasons, almost every country has adopted a plan in modern times. The planned areas are growing over time. Pure capitalism is changing its structure and form. Now in the same system, along with the sector, the planned sectors are also working and that is why this type of economy is now called Mixed Economy.

Key Points

• From the third half of the twentieth century, the concept of economic planning gained importance.
• Through planning, many countries have reaped the many benefits of economic growth.
• Economists have interpreted the concept of planning in different ways. Arthur Lewis, Dickinson, Whelan's newcomer and Dr. Gunns have clarified the concept of planning separately. However, Velenka's definition is closer to reality.
• In the system of capitalism, the basic decision of allocating resources is mechanized by facts. There are many cases where the pricing system is unable to show the desired results, there is a need for planning.
• In areas where investors do not want to participate, the government can take care of the planning itself.
• Proper use of resources can only be guaranteed through planning.
• The solution to a major problem such as unemployment lies in planning.
• Only through economic planning can regional economic numbers be reduced. And the problem of inequitable distribution of wealth between the rich and the poor cannot be solved by prices, economic planning is the solution.
• If the country's balance of payments is inconsistent, plan to correct it
• While the supply and demand market system cannot overcome this problem.
• The protection of workers' rights can be guaranteed through economic planning.
• The government makes wise and prudent decisions through planning even when the decisions of individuals are not so solid and far-sighted.