Soviet Union Economy

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PARA5 The fall of the Soviet Union was a defining moment for both empires, capitalism and their relationship. In the time before 1990 when the Soviet Union ceased to exist (Class Notes, April 4), they had a system called state socialism. Under this system, the government planned and regulated the economy, although the system performed poorly when compared to the capitalist economies in the west they were advanced in their Social policies. The system was designed to provide full employment, good education and health care to the people within their society (Fulcher, p. 97). After the collapse, the system was presented to have failed because of its socialist nature and therefore showed that capitalism was the only system that was effective. …show more content…
They used the media to impress the image on their people that capitalism was the only thing that would work and protect them, because the media is used to create the ideological state and show the values of the nation it was critical that they presented the system in nothing but a negative way despite the fact that while not economically effective protected their citizens very well (Class Notes, April 4). Additionally, the information that was withheld was when the Soviet Union attempted to move to a free market economy inflation increased dramatically and pushed millions of people into poverty (Fulcher, p 98) the control of information is integral to the control the American empire who used all of their power to ensure that people viewed socialism as bad and fell into line with their version of capitalism ( Class Notes, April 4). In fact, many people view American capitalism as the reason that the Soviet Union fell because it perpetuated a focus on the individual rather than the collective as what Soviet Union culture had been before the 1990s (Fulcher, …show more content…
115). Once again people began to question capitalism as a system and how much regulation and control should the government have; when people, on a large scale, question capitalism as a system and government control comes in phases. As evidenced in Fordism, after the Second World War, people were afraid of another depression such as the one that followed the First World War. Thus there was a call for the government to become more involved in the economy and create state-funded social programs, the time between 1945 and 1970 were known as the rise of the welfare state. However, after the economy slowed in the 1970s people began to once again support deregulation of the economy believing that it would increase employment and benefit the masses. One major component was the deregulation of state-run social programs and privatization of services that were government provided. The issue of regulation reemerged because of the 2008-2009 financial crisis where people were approved for loan or mortgages that they couldn’t afford and then they lost their homes while bank executives received performance bonuses. Once again people wondered if having a deregulated economy was the best financial system because clearly, the capitalists weren't protecting the everyday person and the

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