planned economy
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planned economy
An economic system in which a central state authority plans and controls the production, distribution, and pricing of goods and services. It is the opposite of a market economy.
In der ehemaligen DDR herrschte eine Planwirtschaft, die zu Versorgungsengpässen führte.
In the former GDR, there was a planned economy, which led to supply shortages.
The word is a compound of 'der Plan' (the plan) and 'die Wirtschaft' (the economy). So it literally describes an economy that functions according to a central plan.
Merkmale einer Planwirtschaft sind staatliche Preisvorgaben und Produktionsziele.
Features of a planned economy include state price controls and production targets.
The term 'Planwirtschaft' is closely connected with the history of the GDR and other former socialist states. It is often used to describe their economic system.
Viele Menschen, die in der Planwirtschaft aufgewachsen sind, erinnern sich an Mangel und lange Wartezeiten.
Many people who grew up in the planned economy remember shortages and long waiting times.
'Planwirtschaft' is often combined with adjectives like 'zentral' (central) or 'staatlich' (state-run) to emphasize who has control. The combination 'sozialistische Planwirtschaft' (socialist planned economy) is also common.
Die zentrale Planwirtschaft konnte nicht flexibel auf die Bedürfnisse der Menschen reagieren.
The central planned economy could not respond flexibly to people's needs.
