A Centrally Planned Economy, often known as a command economy, is an economic system in which economic decisions about the production and distribution of products are made by a government authority.The term "command economy" is often used interchangeably with "state capitalism." The latter term was originally coined by Karl Marx in his Critique of the Gotha Programme (1875) to describe what he believed was the inevitable result of capitalism: socialism. In its purest form, state capitalism would be an entirely state-run economy (sometimes referred to as state socialism), but it can also be implemented through other means such as regulation.In its most basic form, state capitalism provides for complete control over all aspects of production, distribution, and consumption. The direct involvement of the state in all economic activity is not necessary; however, many countries that have implemented some form of central planning have sought to control every aspect of their economies.
