The Soviet Economy

The Soviet Economy

Unlike the economy of Canada the U.S.S.R.'s economy was centralized. The government owned and operated almost all the businesses and industries. They set the quotas, terms of activity and prices for all goods. In this system there are many microeconomic (see earlier) inefficiencies. There are shortages and gluts within the system. The economy did work for quite awhile and some countries are still able to survive using this type of planned economy. [JP] {EC}