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but seems sucessful in China..as china going to be a third most worldpower in coming years...

2006-06-29 23:53:24 · 21 answers · asked by mahak 2 in Social Science Economics

21 answers

Communism failed in Russia because communism and socialism are fatally flawed, both in theory and practice. Imagine the market as an infinite number of transactions. In socialism/communism, most of the transactions result from the forcible redistribution of wealth, from producer to consumer. In other words, the government takes some form of wealth from one party and gives it to another party. This has four very harmful effects on the transaction, and collectively, on the economy:

(1) only one party benefits, while the other party is harmed. There is a winner and a loser in every transaction;

(2) typically, the party that benefits simply consumes the benefit instead of turning it into production;

(3) the government must insert itself as a middleman in the transaction (the hammer that forces the redistribution), and this must also be financed, usually by taking their cut; and

(4) eventually, no one wants to be a producer, when producers are what the economy (and the society) needs the most.

In capitalism, transactions are mutually beneficial. If I value your loaf of bread more than I value the dollar in my pocket, and you value the dollar in my pocket more than you value your loaf of bread, then we trade. Both of us benefit! There is no "winner" or "loser" in the transaction. Further, I can add value by selling individual pieces of toast to other customers, for example, at 20 cents per piece, and turn that loaf into a $2.00 profit for me, while still getting to eat some of it. And, in a capitalist society, the government pretty much keeps its hands out of the deal (except for a relatively nominal sales tax). There is no need for the government to "force" the deal, because it is voluntary and it is good for the economy and society.

Now imagine the cumulative effect of this dynamic: if you have an economy that institutionalizes the plunder of the producers for the benefit of the consumers, then you compound all the inherent flaws infinitely, while you deny society the opportunity for the mutually beneficial interaction. On a personal level, this makes your neighbor your enemy instead of your potential partner, because there is only so much the government can plunder on your behalf.

This was the tragedy of the Soviet Union. It did not collapse because of U.S. intervention. That is an utter fallacy. It would have collapsed long ago had it NOT been for U.S. aid bailing it out of its self-created famines during the Stalin years.

China is in a different situation. Communism there did not fail spectacularly and dramatically like the Soviet Union, because it is gradually adapting capitalist policies and allowing greater freedoms. As one answer pointed out, approximately 1/3 of its economy is now private. This is a huge step forward for them, and has allowed millions to bring themselves up out of the poverty that years of communism had forced on them.

Two words that can help any country out of poverty: Market Economy.

2006-07-01 04:54:25 · answer #1 · answered by Martin L 5 · 13 5

You could argue that it failed because most of the world wanted it to fail. After ww2 communism is a threat to the capitalist system. So the cold war started if the world had left it alone maybe it have faired better. Second you could argue human nature trumped communism people always seem to want more and the people in power tend to get more despite the ideas of equality communism entails. Third it's isolation any country so far in history that has isolated itself or been isolated has suffered quite a bit. Japan tried it for fear of the European powers and it quickly fell behind. Iran has been isolated by most of the world and along with north Korea. It's it easy making it alone.

2016-03-16 21:32:10 · answer #2 · answered by Anonymous · 1 0

The concept that everyone gets the same is absurd. No one thrives by splitting everything they have with everyone. There must be and incentive. China too will fall to the pressures of commerce and Imperialism. China came to it's senses by accepting the FACT that to prosper, the people themselves must prosper, that means business. Now with business, they will face growing pressure from these new business to change China's polices and ridiculous censorship's and restrictions of freedoms. There is no way for business to compete and grow with so many handicaps. Mark these word, in the next 15 or so years, China will either fall back into despair, or become a REAL democracy just like the U.S, but NOT communist.

2006-06-30 00:15:49 · answer #3 · answered by Anonymous · 1 1

Communism was condemned due to lack of support from other nations, condemned due to corruption within its leadership, condemned due to the moral weakness of humanity, making what is perfect on paper, ineffective in the real world. The end of this system was very violent. It left one of the two most powerful nations in the world fearful of what was to come. Communism can either be called a concept or system of society. In a society that follows the communist beliefs groups own the major resources and means of production, rather than a certain individual

2006-06-30 00:21:29 · answer #4 · answered by poppins_renu 1 · 2 1

Communism is an inherently flawed political system; it fails to take into account the human need to have stuff (to put it colloquially). If a doctor earns the same as a ditch-digger you wind up with fewer people willing to put in the work to be a doctor. In Russia Communism quickly changed to a class society of two strata; those in power who had anything and the rest who had practically nothing.

2006-06-30 00:04:38 · answer #5 · answered by Anonymous · 2 1

It was already stated, but i would like to re emphasize...
It failed because the US wouldn't leave it alone and caused political havoc everywhere trying to force the to squander their resources. The did this bc the USSR at one point was well on their way to catching up and being more industrious then the US.
So unike China it encountered problems everywhere. And had to waste $$ on weapons to make sure that the west knew that if they tried to invade they would meet strong opposition.
In addition, Communism wasnt exactly what socialism was meant to be.
And you cannot say that there is something wrong with a system that believes every human being deserves food and shelter...BECAUSE it is human nature to be so greedy and want to hoard everything for ourselves. So we NEED someone to keep us from being so darn selfish.
Do you feel no pity for the starving homeless people in NY?? How about the battered women shelters? filled w women and children with nowhere to go...?

2006-06-30 11:39:04 · answer #6 · answered by acm7680 2 · 2 3

China, now-a-days, isn't really communist. The government claims to be communist, but if it were truly communist, then why are foreign companies investing in China's private sector? China was communist for a time under Mao Zedong, but thankfully that passed as Deng Xiaopeng made capitalistic reforms.

2006-07-02 05:59:36 · answer #7 · answered by Chx 2 · 1 1

Reagan quite giving them food made them start buying it,communism is not working in china what keeps there economy going is the private (non communist) sector and America giving them most favored nation trade status

2006-06-30 00:17:35 · answer #8 · answered by biggun4570 4 · 2 2

till 1960 the communism was booming in Russia like anything but after the 75%of its annual income was being spend on the military works the locals were being poorer and poorer.even to buy the simple grocery items people had to be in Que and had to stand for hours and hours. this become unbearable in late80,s and on 1st November the Communism was demolished in Russia
Apart from that china is giving its people proper opportunities to gloom and to shine in the world so its being stronger and stronger day by day. it is progressing by leaps and bounces

2006-06-30 00:12:27 · answer #9 · answered by manu_khandelwal18 2 · 1 1

Communism failed in Russia because:

A) It wasn't true communism.

B) It was a bureaucratric centralist system (following the Stalin era when it was Stalinist) where the bureaucrats expropriated too much wealth.

C) Price mechanisms were flawed (bread lines were caused by bureaucratically fixed, cheap bread prices due to price ceilings). If diamonds were 25 cents in the U.S. (but market priced elsewhere) what would lines at the jewelry store look like? How quickly would the jewelry store sell-out of diamonds?

D) Military spending squandered resources.

2006-06-30 01:30:28 · answer #10 · answered by ideogenetic 7 · 1 3

Failure Of Communism

2016-10-15 06:55:49 · answer #11 · answered by ? 4 · 0 0

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