Explain the implications of economic planning.

Students' answers may vary.
Economic planning is defined as long-term decisions by either government or corporations about what and how much to produce.Modern corporations engage in economic planning and try to dominate markets and control their environment, which is exactly what free-market economists don't like about government.Corporate managers must decide far in advance what to do with investments such as where to build factories, what workers to hire, and how much to pay the CEOs.None of these decisions is determined by the market.Furthermore, consumer demand doesn't fully determine what items are produced.Consumer demand doesn't grow by itself, but is often created and manipulated via advertising and marketing.Many Americans spend beyond their means, partly due to viewing ads that promote consumption.