Friday, July 27, 2012

How has a centrally planned economy affected the people of the Soviet Union? How has it affected their quality of life?

The government took complete control of the Soviet Union's economy. A new government department was set up to set targets in each industry, like what production each industry was supposed to reach. If it had been reached, there would be rewards given to the workers for their contribution, earning a higher salary. If it was not up-to-standard, they were punished or sacked from their jobs. This really limit work productivity as they are forced to follow targets, limiting their creativity, listening to the government's beck-and-call.


Also, farms were collectivized. Farmers were given bigger plots of land and also newer farming machinery, instead of the old tractors. But, some peasants resisted this farming policy as they did not want to abandon their traditional  way of life and also experience in the WWI that it brought about food shortages. So, it led to conflict and so led to prolonged famine as lesser crops were produced. The quality of life was affected at this moment.

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