Governments Today Essay

This essay has a total of 1337 words and 5 pages.

Governments Today

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 nation's 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 Union's 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 country's 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 USSR's 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 USSR's 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 1980's. The
war against Afghanistan in 1979 had depleted the nation's 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 Andropov's death, Chernenko failed to keep up
Andropov's scare tactic. After Chernenko's death Gorbachev, the new ruler of the Soviet
Union, introduce perestroika in attempts to save the USSR's economy. However Gorbachev's
perestroika reforms only complicated USSR's economy, this was due to contradictory
Continues for 3 more pages >>