The Rise and Fall of Communism in the Soviet Union

The command system, which is also described as Marxism, socialism, or communism, is both a political and economic philosophy. In a communist economy, the government owns most of the firms, subsequently controlling production and allocation of resources. One of the most well-known and well-documented cases of a communist government took place in the Soviet Union, beginning in 1917 and eventually falling in 1992. Idealistically, communism eliminates social classism and provides equal work for all in a particular society. The government appoints a central planning board to “determine production goals for each enterprise and to specify the amount of resources to be allocated to each enterprise so that it can reach its production goals.” In theory, communism attempts to create an egalitarian society. However, due to its detrimental effects on the economy and the quality of life of the working class, the Soviet Union’s communist government failed to prosper.
Through the Russian Revolution of October 1917, the Bolsheviks rose to power. During this time, the Soviet Union was involved in the First World War, which had devastating effects on its economy. There were shortages on essential supplies including food, clothing, and fuel. Levels of agricultural and industrial production were down compared to levels in 1913. Economic breakdown, civil war and irrepressible inflation accompanied the Russian Revolution of October 1917. Due to these circumstances, the Bolsheviks moved to nationalize all economic property. They took control of industry and trade and declared all private enterprise illegal. In essence, money lost its value. Due to what is now known as War Communism, the majority of resources were allocated to the civil war fronts. In rural Russia, land was seized and redistributed to be worked using limited resources and equipment. Any surplus in production was seized by the state, completely eliminating incentive to produce any surplus at all.

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