The use of the term deficit when comparing planned & market economies is questionable.
In a planned economy, a scenario where 100 smartphones were produced & the price was set to $200, but 150 people were willing to pay that price is often considered a deficit.
In a market economy, the same scenario could play out with a company raising the price to $250, leading to only 100 smartphones being sold. Market economy fans would call this an equilibrium price & praise the market's efficiency.
1/2🧵
But in reality, in both cases only 100 people obtained a smartphone. Using price to decrease effective demand does not necessarily mean that the need in aggregated demand is satisfied.
That's why it's important to compare economic systems based on their efficiency in satisfying aggregated demand for goods, rather than focusing on deficits and surpluses.