During Cold War period the US economy was more developed than the rest of the world. Still the Soviet system had some special features which distinguish it from the US. Evaluate any two such features:
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Centralized Planning: One distinguishing feature of the Soviet system was its centralized economic planning, in contrast to the market-based economy of the United States. The Soviet Union implemented a command economy, where the government controlled the production and distribution of goods and services through central planning agencies like Gosplan. This centralized planning aimed to achieve specific economic targets set by the state, such as rapid industrialization and prioritizing heavy industry over consumer goods.
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State Ownership of Means of Production: In the Soviet Union, the state owned and controlled the means of production, including factories, farms, and natural resources. This contrasts with the predominantly private ownership and free market system in the United States. State ownership allowed the Soviet government to exert significant influence over economic activity and resource allocation, aligning production decisions with state priorities rather than market demand. However, it also led to inefficiencies, lack of innovation, and reduced incentives for productivity.
