Planned economies and free market economies are completely different. Each of them have positive features and negative ones and that is why it is very important for a country to decide which one they are going to use being completely aware of the economic problems that each of them may present. These economies are very extremists, they work opposite to each other and because of this many countries decide to have a mixed economy to be more balances to what the country really need being aware of the incomes.
A planned economy is also known as, centrally planned economy or command economy. What this means is that the economic problem is handled centrally by the government; so the government is the only one involved when it comes to make decisions on the prices and wages, production type and levels to fit what the people need and want. The planned economy was very popular during the 80's, since the third of the world applied this economy, approximately; now only three countries have planned economies: North Korea, Cuba and Laus.
On the other side, a free market economy allows each private enterprise handle the economic problem from what they think it is best for them. In this economy the government have no intervention at all so the resources are privately owned and each company have to choose an adequate allocation of supply. To be able to choose an adequate allocation they have to know that are the demands so they do not lose money in production.
We can see that the two economies are very different and each have a good side but, in my opinion it is important that the economy of each country is balances so that there could be capitalism, allow each person get their personal income for their benefits, but also the government administrates it properly so that there is not unfair inequalities between people in the same country.
