A look at Socialism and Communism Russian Economics A look at Socialism and Communism

Soviet Russia’s Economics Communism - a theory or system of social organization based on the holding of all property in common, actual ownership being ascribed to the community as a whole or to the state. Communism (2nd definition)- a system of social organization in which all economic and social activity is controlled by a totalitarian state dominated by a single and self-perpetuating political party. The state owns everything from the land to the product. The government a.k.a. the state determines how much you can sell and for how much you can sell it. Soviet Russia’s Economics

Difference Between Communism and Socialism In a communist society everything is owned by the working class and everyone works toward the same communal goal. There are no wealthy and poor classes. Instead, all are equal. Production from the community is distributed based upon need, not by effort or amount of work. It is expected that basic needs for each worker are met by the community, and there is no more to be obtained through working more than what is required. Difference Between Communism and Socialism

Difference Between Communism and Socialism Socialism shares similarities to communism but to a lesser extreme. As in communism, equality is the main focus. Instead of the workers owning the facilities and tools for production, workers are paid and allowed to spend their wages as they choose, while the governing body owns and operates the means of production for the benefit of the working class. Each worker is provided with necessities so he is able to produce without worry for his basic needs. Still, advancement and production are limited because there is no incentive to achieve more. Without motivation to succeed, such as the ability to own an income-producing business, workers' human instincts prohibit drive and desire that is produced through such incentives. Difference Between Communism and Socialism

Stalin’s Five Year Plans Stalin’s five year plans and it’s problems Russian goals were set to high to meet Failure resulted in wage cuts, or increased goals Heavy regulations were forced upon every industry, farm, and worker, creating no realistic way for the workers to achieve their goals. The state made all decisions on all things, which in many cases the state had little to no knowledge of. Stalin’s Five Year Plans

Soviet Russia’s Economics A great summary of the Russian economy, and peoples mind set toward Capitalism. All done to the tone of Tetris.

Soviet Russia’s Economics Why Socialism always fails The state makes all the economic decisions for every industry, and company Over regulation Commands the actions of the people in the economy No reward for hard work or extra schooling Any idea created belongs to the state as a whole The very nature discourages entrepreneurship There is zero benefit to work hard and make money which also means technology, innovation, and creativity are destroyed Creates a slow moving, stagnant economy, and has little to no avenues for relief when recessions happen Soviet Russia’s Economics