Russia's History and Principles in the Economic system.
Russia's big involvement in economic change happened in the February Revolution, where Tsar Nicholas II was overthrown. Then another revolution took place in October 1917, where Vladimir Lenin took over control and soon formed the Soviet Union.
Significant people
Lenin and his peers were heavily influenced by Karl Marx's ideology, which is called communism. His idea influenced the Soviet Union greatly and this continued for around 69 years.
His significance lies in the fact that his idea, communism influenced the Soviet Union's economic system to follow a model where the "people" controls over virtually all means of production, investment, production, and consumption decisions. To sum that up, everyone owns everything (perfect communism)
Lenin was also a major player in Russia's economic systems ideas and principles. His Leninism was very similar to Marx's ideology, but the government provides the necessary supplies to live, heavily benefiting the working class. Aka: socialism
The Principle of the state or the government controlling over the market (in other words, command economy) was born because of the belief that capitalism wasn't providing the common people with equal opportunity. And the only way to solve this was to abolish private property (take away from the rich and return it to the "people") while letting society take over ownership of the forces of production and commerce. The Soviet Union did this by setting up a government to "represent the people". Everything technically still belongs to the people (commoners).
It somewhat reminded me of the hive mind in Starcraft
The belief that this would work was because they believed people will work together for a common goal and take what they need to survive from the state. Meaning Russia's old economic system followed a command economy, influenced by the Communist Revolution and two set idealism; Leninism and Communism.
Command economy is an economy in which production, investment, prices, and incomes are determined centrally by a government.
What were the main factors of the failure of this economic system?
No competition - why even bother to reach higher? or work harder than others?
People are not perfect - why work when you can ride off people? if he's not working, why should I work for him?
Selfishness, laziness, and lack of ego played a huge role in the failure.
What are still the positive sides and the strengths of this economic system
What if people are perfect - Everyone will work for a common goal, boosting the economy.
No class system will exist - Everyone will be equal in wealth, and the people will rise up together without leaving behind anyone.
Overall, the effectiveness of the old economic structure was a failure since humans are not perfect. This idea of human's not being perfect was also stated by Thomas Hobbes. The not very effectiveness of the economic system can be backed up with the dissolution of the Soviet Union after the economic troubles that appeared as the command economy was implemented. (Ex. the focus of arms)
