classical 'communism' uses a state-runs-EVERYTHING economic system, where the state owns all the businesses and the manufacturing plants. Another part of the state, the 'Central Planning Agency', then tells ALL the manufacturing plants what to make, & the plants have no say in the matter. The state told the car plants what cars to make, they told the steel plants what steel products to make, the house builders what kinds of houses to build, and told the tractor factory what tractors to build. Problem was that this Central Planning Agency didn't have a clue what THE PEOPLE WANTED. So all the factories kept churning out stuff THAT NOBODY WANTED. Eventually, the factories ran-out of raw materials & parts, but the economy didn't have any cash left to buy that stuff from other countries, so the PRINTED MORE CASH !! Easy enough. So the value of the Soviet Ruble tanked, all the factories were piled-high with stuff nobody wanted, and the ENTIRE ECONOMY COLLAPSED !! After the USSR collapsed, Russia was out in the cold with a ruined economy and the economy has never come back. Today, Russia limps along by selling their natural resources, like gold, oil, coal, & natural gas. No matter WHAT Putin says, he's king of a DUMP.
· 11 months ago