Economic Stagnation In Communism

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In the communist bloc, economic stagnation led to creation of trade unions such as solidarity in Poland, which led to people interest to be free from the Soviet Union. These economic problems caused political externalities in the communist bloc, giving rise to nationalism and desire of freedom. These problem lead to the end of the cold war, the rate of productivity in communist bloc started to decrease compared to capitalism and declining growth rates. In 1975 the productivity in communism compare to capitalism was 6% and in 1985 it decreased to 1.8%. Economic stagnation led to major dissatisfaction amongst population in communism. People wanted their own properties and different economic system (e.g. capitalism).

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