Basic principles of the market economy:
* Private Enterprise.
* Various forms of property over the means of production.
- Private property
- Collective ownership
- State ownership.
* Market pricing.
* Free competition.
* Relationship between humans and plants.
* Limited intervention in the economy.
* Progressive tax system.
* Not equivalent labor, distribution of wealth in society.
* Planned obsolescence of goods.
Planned economy is the diametric opposite of the market economy. In centrally planned economy to plan and supervise the production of goods destined for consumption in a market economy to produce goods to exchange for money.
Disadvantages of planned economy are his clumsy readjustment in subsequent changes in market demand, slow reaction in trade relations with other countries and the lack of technology to shorten the life of manufactured goods.
The disadvantage of a market economy, is clumsy in its response to the universal fund projects with uncertain prospects for profit. The only exceptions are research projects for the secret services and the military. But they not only can not be attributed to universal field projects, they are anti-human projects.
While the state planned economy funded research in the market economy research is funded by private entrepreneurs who invest only if they can make a profit. And to ensure profit, need to be protected from competition by the copyright and patent rights.
In October 2011 the European Court bans patented human embryos to extract their stem cells to treat Parkinson's syndrome, which freezes the scientific discoveries of Oliver Brüstle. The court, scientific discovery is patented in order to commercialize and profit derived from it. A human body in all its stages of embryonic development, can not be subject to profits.
The advantage of the market economy The market economy, unlike plans adjusts quickly to any changes in market demand. The oil crisis of 1979 accelerated the pace of increasing the contrast between rich and poor, typical of a market economy. Market economy responds quickly to divide the society and started producing small luxury planes parallel to improve the bus as a vehicle for those who earn their living through work. Build super luxury villas with pools and waterfalls, alongside the increasingly small bedroom homes for workers.
During this period in Western countries with free education appear first private institutions that respond to market demand and receive training fail entrance exams in the free state institutions.
In the planned economy is assumed that the state can best assess what goods and services people need. For this purpose, plans are - five-year plan under socialism. These plans indicate what goods to produce, what crops to sow, what services are offered to the public and which part of the population from which goods and services will profit.
In the market economy, private entrepreneurs free to choose what to produce, in what quantity and at what price to sell it. Of course it is a free choice of the developer, not about who can become an entrepreneur.
In the planned economy, the state determined by the specialists will be needed and consequently the students and which courses to take and train.
In the education market economic system barely planned by the state. There are private schools, such as the New Bulgarian University, which is funded and controlled in terms of the quality of the state. One of the sponsors of the New Bulgarian University is George Soros, who sponsored color revolutions.
Like all other institutions, the state in a market economy is profit-oriented. If goods manufacturers profit from the sale of goods, prostitutes offered sexual services, the state benefits from taxation. And private institution that has benefited is welcome to the market, because to pay tax. Whether this school trains specialists or simply collecting money from gullible people.
A profit-oriented only private schools are interested may take more students, even in subjects that are not consistent with market demand, and the solid line are the dreams of prospective students and their parents.
And subject to the sole condition - specific charges, students receive educational qualification. Whether they attended lectures that have appeared in exams and if they attended lectures, whether they could learn from teachers, dilettantes. And even if the market needs such specialists is a problem for the students, not the school.
In the planned economy, health care plans and funded by the state. In a market economy, and health care is an industry like any other industry, is based on profit. State of the market as it makes no sense to invest in treatment and prevention of tuberculosis, as usually poor suffer from tuberculosis. In country market makes more sense to invest in treatment of impotence and penis implant prosthesis. Because rich men make sense of sex in old age, which are willing to pay exorbitant sums.
In the planned economy, the state determines what drugs are produced and if not yet past five years of patent to be imported from abroad. As a rule, drugs whose therapeutic action is not scientifically proven, in a planned economy is not producing and not imported. Izkolyuchenie make pharmacies under socialism, which was shopped to Western currency (Corecom). They sell drugs and no proven therapeutic effect.
In the market economy, government intervention in the pharmaceutical industry is limited. Manufacturers of drugs unless they have the right to produce drugs with placebo effect sometimes produced drugs that permanently damaged patients or fetus in pregnant women. One of the most famous cases was the drug Thalidomide (α-Phthalimidoglutarimid), sold as a sedative agent in Contergan names and Softenon, in the 1950s and early 1960s. Following acceptance by pregnant women in western democracies are born thousands of children with aplasia (congenital absence of authority).
In the planned economy, the state determines how many hotels have been built, starting from the number of tourists. During the socialist government in Bulgaria in the hotels are 100% occupied. In a market economy, which pay bribes to government officials the authority to cut down forests to build hotels. In today's democratic Bulgaria hotels have 25% employment. And if profits do not go to hotel owners to repay bank creditors, there is no problem. Democratic state would help the banks do not go bankrupt, with funds from taxpayers.
In the planned economy, the state determines what crops to sow, to consumption and to the dependence of the state in the case of imports from abroad. In a market economy can not at all be planted crops where food can be purchased from abroad or produced chemically.
In the market economic system for the country is good everything is profitable, the state taxed. State intervention is limited, guided solely by profit and objectives improving people's lives through health, education and social policy, and only money to make more money.
"The social responsibility of business is to increase its profits." Milton Friedman - The New York Times Magazine, September 13, 1970
The most profitable German automotive industry. Railways in Germany are state and to promote the automobile industry, the state sets high prices of tickets for city and public transport, resulting in the railways every year millions of realized losses rather than gains. In Bulgaria there are no cars, but the prices of public transport are also extremely high in order to encourage car for those who have accepted into NATO and the European Union. For comparison - in countries with approximately the same standard as in Bulgaria, the price of public transport is three times lower.
In the planned economy the state determines the price of goods. In a market economy fix them monopoly prices, which is usually from another country or even another continent.
In a market economy, but a large share of state ownership, prices of electricity, heating and telephone are regulated by the state as a fixed percentage of the minimum wage. These are the former USSR, China.
In a market economy, in which production of energy and telecommunications are privately owned, prices are determined solely on whether their owner has one, whether they have a monopoly on these industries. In order to avoid social unrest of unbearably high prices, monopoly control their property through proxies. But even if the owners are indeed different, Usually they secretly agree to maintain high prices.
In a planned economy, goods are categorized by officials of essential commodities and goods-luxury. And the wages of workers, usually enough to buy basic necessities. A deluxe catalog are achievable communist party leaders.
In the market economy, wages may be insufficient even to meet basic physiological needs - food, water, heat. If a worker is young and good-looking woman and offers to develop further in the company of the employer, and sometimes his friends. But for all other workers, the market economy is thought to They would offer to obtain consumer credit. In favorable conditions!
"If French is their expensive gasoline simply pass on bicycles." Christine Lagarde - IMF
If the Bulgarians their expensive heating, just dressed better. If their water is expensive, just dig a well in the yard.
In civilized countries, imprisonment for debt was officially abolished during the Middle Ages. But in modern democratic and constitutional state legislature has provided a loophole - so-called contempt of court for which the debtor may be imprisoned. Besides this loophole market legislation has provided another alternative: that the debtor be charged when received credit had no intention or ability to return it, that served her with fraud.
In the planned economy, the state decided on wages and the resulting distribution of wealth in society. In a market economy, wages are determined by the unemployment rate, ie the ratio between supply and demand of labor market and the growth of poverty among the unemployed.
While the state planned economy unemployment down to an absolute minimum, in a market economy country reduces the quality of life of the unemployed to an absolute minimum.
In the planned economy there is a so-called "citizenship" - a restriction that seeks local cadres not to be undercut by those of other cities, resulting in being unemployed.
In a market economy, there are no restrictions on residence, but not democratic or humane reasons, but because people living rental disoriented about their rights are more convenient for employers. Placed in a hopeless situation, they agree to work in all conditions and sign any contract proposed by the Lords.
With the conquest of America, European colonists knew that much harder to force local Indians to work in the plantations than transported from thousands of miles Africans torn from their homes, uninformed in deadlock.
Some authors use the word economy as synonymous with capitalism. John Kenneth Galbraith (John Kenneth Galbraith) after World War II, replacing the word with the word capitalism market economy - "market system", because deskreditiraneto capitalism in times of economic crisis. Recently, as a synonym for capitalism use the word democracy, but only if it relates to the country from NATO,
the European Union or a country which is allowed to be privatized by the Western democracies. For all other countries with capitalist device applies the concept of dictatorship. And especially for those countries where billionaires are sentenced to prison. Billionaire in jail - a taboo for Western democracies.
In a market economy, everything, everything costs money and if you have no money to buy it, own your own fault.
In the planned economy, the state is planning what to produce. In a market economy produces even what anybody does not need. Goods which have no practical use, play an important role in sexual selection.
In the market economy the market is set according to the wishes of the people, and people need to be adjusted according to the desires of the market.
In market economy industry sacrifice for the good of the people and the people have to sacrifice their wealth, the prosperity of the industry.
In the market economy the market adapts according to law and public morality, and society adapts to the laws and morals, according to market demand.
In the market economy the market is set according to the education of the people, and people need to be educated or to remain illiterate, depending on whether the market has a demand for educated or illiterate people: The new law school in 2012, allowed passage into upper class couple.