Topic > The Butterfly Effect - 734

A general economic problem for the Soviet Union was the lack of profit incentives for productivity. Soviet citizens would pretend to work because the government would pretend to pay them. One of the main reasons the Soviet Union failed was because seventy percent of industrial production went to the military, an unrealistic figure to maintain while also supporting a country. In the Soviet Union they would create an incentive for an item, but they would get a surplus and then the items would go to waste. In the United States, each individual determines his or her own successes or failures. For example, a private business can only be successful if the owner and workers have the incentives to make a profit which requires marketing, networking and many hours of work. Americans are incentivized to make larger profits so they can buy better food, bigger homes, and provide more for their families. These incentives lead Americans to find a career path in high school, attend college, and pursue competitive companies. The Soviet Union and the United States have contrasting economic systems regarding government involvement in the economy, economic efficiency, and supply/demand incentives. The government of the Soviet Union was too involved, production was inefficient, and incentives were lacking; all this led to the collapse of the Soviet