Soviet Union's Command Economy

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From 1917 to 1991, the Soviet Union was a Communist controlled command economy. (9) A command economy is when the government controls the production, distribution and the consumption of goods. (4) The Soviet Union failed because of the reconstruction of its command economy, led by Mikhail Gorbachev. During the 1980's and 1990-91, the Soviet Union faced the reconstruction of their economy because Mikhail Gorbachev observed he needed to form a plan to reform the economy. (7) These reforms replaced the more imperious aspects of the command economy with freedoms for the citizens. When control was taken away from the government, it was not a command economy anymore. It was a free enterprise economy. The command economy kept the Soviet Union together, …show more content…

(7) He wanted to increase the citizen's control of the information they received and the supply and demand. (8) The new control the people possessed was the result of perestroika. Foremost, perestroika was the reconstruction of the economy. (5) Before perestroika, The Communist party controlled the command economy, the information that the country received, (5) decided the prices of goods and decided how the resources were distributed. (8) Gorbachev gave up this power over the economy and embedded ideas from the free enterprise economy into the Soviet Union's. (6) Perestroika dramatically changed the Soviet Union's economy. (1) It allowed people to vote for government officials. (1) Consequently, the citizens' happiness with this reform began to taper out because the Soviet people did not have enough food, money, or jobs. There were shortages of everything. A person stood in line for hours to buy a simple good. In the command …show more content…

(7) Gorbachev and President Ronald Reagan entered into the Strategic Arms Reduction Talks (START) in 1982 to decrease the number of “missiles and warheads” America and the Soviet Union created. (2) When the Soviet Union and the U.S. entered into the START treaty, the Soviet Union felt it the worst. The U.S. still possessed other forms of power, unlike the Soviet Union, whose main source of power was given up by Gorbachev. (6). Gorbachev's eyes were set on his goal for the Soviet Union to possess the strongest military. He built up the military and drained more money than the Soviet Union owned. The more the Americans built up their nuclear arms, the more the Soviet Union spent to keep up. (1) Gorbachev continued increasing the military budget, which diverted the money away from the improvements in other areas of the economy. The country became poor because of this. They possessed little money and the majority of it went toward something that would not give any of it back. Instead, all of it went down the drain when Gorbachev entered into the START Treaty. When START was made, all of the money and improvements put into the buildup of the military were for nothing. This angered the citizens of the Soviet Union because Gorbachev spent a lot of the Soviet's limited money just to give it all up in the START Treaty and this anger furthered the split within the

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