Soviet Command Economy

A command economy is an economy that is under the control of the central government. A command economy focuses on the group rather than individual people. In this type of economy, the government regulates the means of production. An example of the command economy is in the Soviet Command Economy.
The Soviet Command Economy started in 1924 under the rule of the Soviet Union leader, Joseph Stalin. It effected the social structure of the Soviet Union. The government took control of almost every aspect of a person’s life; therefore, the people of the Soviet Union were very poor and not taken care of. The Soviet Union accomplished growth from the 19502 to the 1970s, but economic growth slowed down after this period. Joseph Stalin created five-year plans, collectivized farmland, created labor camps to help industrialize the Soviet Union. By collectivizing

There were flaws in collectivization, competition, wealth, and leadership. Collectivization is a government arrangement where the government collects all private farmland and making them into collective farms. Joseph Stalin thought collectivization would help the Soviet Union’s industry and economy, but a small deficiency would ruin it all. Things like famine and harsh winters would contribute to the failure of collectivization and the economy. The Soviet Command Economy create a lack of economic competition. Because the government owns everything in the Soviet Command Economy, the lack of competition comes from then restriction of private ownership. Command economies can create a lack communication. This develops a struggle for the government to communicate with other countries. This struggle destroys international relations and trade throughout the world, which causes poverty amongst a country. The leadership, also, created flaws. Mikhail Gorbachev allowed the people of the Soviet Union to have a restricted voice. Allowing the people of the Soviet Union to have a