How Did Communism Fail

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Communism is a hypothesis or arrangement of social association in which all property is possessed by the community and every individual contributes and gets as per their capacity and requirements, which is believed to be a failed belief system since all attempts to execute it either voluntarily or by power have adjusted far more closely to the speculations predicting it's workability. Communism might have been an influential ideology among all ideologies of all time. A huge number of people existed under socialist regimes and even a larger number debated if or not it might be a superior system. However, concerning illustration, everybody knows that it failed. It is necessary to say that The S.U. has failed to give a sufficient standard of…show more content…
Although having the highest levels of investment, they still had some of the lowest returns. This was because of the absence of market signals and a lack of accountability. The free market had many defects, the most important was that it couldn't send signals. If you try selling shoes and no one buys them, this is the signal that the market sends you so that you should switch to something else. This signal is not perfect but most of the time and cases it works, but, the problem with Communism is that it had put an end to the market's ability to signal. Consumers barely had a choice so that they would buy the shoes even if they hated them. Thus, there was no way to know if an investment was a good or a bad one. The second problem with making the market a free market was that the way to punish inefficiency and reward competence was no longer there. In a capitalist system, inefficient producers go bankrupt where under Communism a factory can be extremely inefficient and still continue in doing business. It was very easy & possible to make goods of a poor quality and people were forced to buy it as it was the only ones available. For the state to cover all losses and credit was easy & available, thus, there was no intention to take such risks on changing the production system. It was easier to just continue with wasting the…show more content…
Communism to provide incentives for workers to work hard and be productive wasn’t there. It was rare if there was any reward for hard work or creativity and innovation as there was a lack of punishment for poor or inefficient work. This lack of incentives was one of the main & major reasons for the bad performance of the economies of Eastern Europe. Why bother to work hard and be as productive as you can where all you get is nothing, no rewards, nothing but the normal pay you get? As for the employees who worked hard as they could, they got paid the same regardless of how hard they worked. There was a really small difference in the pay between professions to motivate the workers to improve, develop and work harder. Unemployment wasn’t an option as there was no threat of getting fired, so jobs were guaranteed no matter how bad the people worked, that is if they worked at all. This problem has also affected the management everywhere. Under Communism, managers were not efficient, but to fulfil their plan. Getting enough money so that they can cover their costs was easy, which means that financial losses and going bankrupt meant nothing to the

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