Inception

My idea is that we need a more planned out economy so people don't become poor and those in need can get what they need

Every time a planned economy takes place we end up with shortages.

What do you mean?

Also every time an unplanned economy takes place we end up with homeless starving people

Planned economies generally deal with allotments in farming. These lead to shortages of food as farmers can’t overplant that allotment. That’s one reason why, despite having fertile land, the former Soviet states had massive famines while crops rotted in the fields. Sometime research how the Soviets tried to plan the planting of cotton around the Aral Sea and how it almost completely dried out. Decades later it still has not recovered and likely never will.

Planning housing also results in more homelessness. While entrepreneurs could build small housing units or pods where people could live (like in Japan) but zoning laws prevent that. Also do-gooders institute rent controls that make it less likely to build apartment complexes for low rent. So demand continues to rise as people seek work in the cities (where more opportunities naturally exist to work as all work involves serving others) but supply actually decreases, making the in affordability problem worse.

The problem is that no planning committee — government or not — can possibly anticipate all anomalies in the general public, and whatever their need changes may be.

Meanwhile, when the US had the Great Depression, the government created a policy to help farmers get higher prices for food by paying them to destroy crops. This resulted in massive shortages that led to people standing in bread lines because they couldn’t afford food in the cities. But if the markets had been allowed to operate freely the price of food would have gone down significantly as the supply increased. The depression was made much worse by government interference and was ultimately prolonged. It would not be until we had a wartime economy that the depression would finally come to an end. So it is not a free market system that causes starvation but attempts to control and plan the market. What you describe is not “real capitalism” but is central planning throwing their monkey wrenches into the works.

Exactly. Free market is a natural system that balances itself. If prices are too high, people buy less, when people buy less supply goes up, when supply goes up, prices go down.

And having the means of production in private hands allows competition to drive innovations that make products better and cheaper while customer service goes up. Meanwhile in planned economies we end up with monopolies that can set prices however high they please and then ignore customers — where else will they go?