The Soviet Union Essay

640 words - 3 pages

The Soviet Union

The Soviet Union sparked its first paths of development towards a communist economy through a five-year plan in 1938. The plan called for government controls and government regulation for their workers. This planned also controlled prices and wages for the workers to control the standard of living and to keep the needs of the common man minimal. The government wanted control of all private industries so that they can push for a rapid industrial society. Benefits such as health care and public housing were terminated to help the Soviet government with their plan. The Soviets wanted to combine their work force with their investments in coal, steel and iron to boost their capital and help them create a super nation.
After Joseph Stalin's death in 1953 a change began to occur in the Soviet Union. A new set of reforms was set up which were to reestablish welfare programs and public housing. This plan that was coined the destalinization effort, was used to introduce the new market strategies, expanding production and raising the profit margin. However politically this plan was looked upon negatively and was merely disregarded. Over time several attempts towards this model were made as late as 1988. Gorbachev was still trying for economic reforms. Small business enterprises began to branch out and with new laws in place more businesses were in control of themselves without that much government regulations. These businesses folded and inflation became a horrid realization for the soviets. The soviet economic plan was failing and was not showing any signs of revival. It was not until the breaking up of the Soviet Union in the early 90's where the Soviet economy would show signs of hope.
Compared to the theories of Marx, the Soviet Union did not begin their economic development in the way, which Marx theorized. He believed that the economy needed to be collectively ran and...

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