What are the consequences of a planned economy?

There are two general limitations:

• Inefficient resource distribution: surplus and shortage; The economic planners are unlikely able to accurately predict future supply and demand. Without market forces to adjust demand and supply you will likely end up with inefficiencies in production as a resut of surpluses for goods not wanted and shortages of goods which were desired.
• Suppression of economic democracy and self-management. Market forces allow entrepreneur and business to react quickly to market forces and ensure that there are less shortages and surpluses.