Governments Today

Should governments today play a greater role in the operation of their economies? In a perfect world everyone would have a job, and would have all which they need to live, however, this is not always the case. Poorer countries may not have the necessary productivity to sustain their economies, working conditions may be awful, or sometimes people may not even have the right to own and operate their own business. This situation is probably caused from too much government intervention. On the other hand, if there is too little government intervention the workers rights could be exploited in order for the industry owners to make more profit. In order for a nationís economy to be successful, that nation must have high productivity, rights for all of its population, and a high standard of living. This can be achieved through some government regulation and the successful use of some points of the market economy system. Some countries that have, or had, a failing economy used centrally planned economic ideologies. The Soviet Union is a good example of a country that has used centrally planned economic ideas and that has had their economy fail. The failure of the Soviet Unionís economy was the effect of no substantial change in the way the economy was run in over 60 years. In 1928, Stalin wanted to improve the countryís economy by increasing its industrialization. In order for increased industrialization, an increase of productivity was in need. The first five-year plan Stalin implemented drastically increased the USSRís production of steel, electric power, machinery, and new industries. However, peasants, who were once farmers and now worked in factories, were frustrated since they were not prepared for their new way of life. These peasants were forced to work in the factories since new machinery had replaced them on the farms were they once worked. However, the new machinery helped to increase agricultural production since they were more efficient and effective. The larger collective farms that could afford the modern machinery were urged to act against the kulaks (rich peasant farmers). The kulaks refused to sell their excess grain were forced to hand over their land to the government. Most of them burned their crops, killed their livestock, and destroyed the machinery in attempts to defy the government. The kulaks caused famine to sweep over the country during 1931 and 1932, since they had destroyed most of their crops, livestock, and machinery. This caused the USSRís economy to slow even more because it needed the agricultural produce to pay for needed industrial machinery. There was a brief recovery of the economy during 1933,1934 and 1935 because of great harvest in those years, and for the moment, the Soviet agriculture had been made more efficient. However, the Soviets economy would soon start to decay again in the 1980ís. The war against Afghanistan in 1979 had depleted the nationís resources and treasury; there was also increased strain on the economy due to increased military expenditures. An aging political leadership also contributed to the decay of the economy since it was unable to sole agricultural mismanagement problems and the inability of inspiring the work force. In an attempt to encourage the productivity of the workers, Yuri Andropov tried to scare the workers into increasing productivity. After Andropovís death, Chernenko failed to keep up Andropovís scare tactic. After Chernenkoís death Gorbachev, the new ruler of the Soviet Union, introduce perestroika in attempts to save the USSRís economy. However Gorbachevís perestroika reforms only complicated USSRís economy, this was due to contradictory policies, as the economy was still slowly declining. After two failed reforms, of Gorbachev and Stalin, the economy of the soviet Union failed in 1991, after sever sacrifices had been made by the people of the Soviet Union. For over a span of seventy years the peasants sacrificed due to the great need for industrialization in the Soviet Union. Due to the unfair working conditions the peasants faced the economy of the Soviet Union was affected in negative ways. Since workers were unable to perform their duties, as was the case in 1917 were many workers were not educated to or trained to manage factories, this caused a decline in productivity and thus also a decline in the economy. Later when Stalin ruled,