1. Main Ideas
The collapse of the soviet economy was political. An old-line communists
try to take control over the government. It failed , leading to ascendancy of
Boris Yeltsin in Russia. The soviet economy had quite a few changes. In the
50’s and 60’s the economy grew 5 to 6 percent and then in the mid 80’s it
fell 2 to 3 percent. This was evidence of the failure of the economy.
Further evidence of failure was the poor quality of Soviet goods.
Technology began to lag especially in consumer goods, which had poor
quality and limited choice.
3. Opinion
• WHY DID THE SOVIET UNION COLLAPSE?
• It fell because the minister of oil of Saudi Arabia, said that the
monarchy had decided to change up its oil policy and The Saudis
stopped protecting oil prices. Saudi Arabia quickly regained its
share in the world market. During the next six months, oil
production in Saudi Arabia increased four times, while oil prices
collapsed by approximately the same amount in real terms. As a
result, the Soviet Union lost about $20 Billion per year and the
country simply couldn’t survive without money.
• Source:
• http://marginalrevolution.com/marginalrevolution/2007/06/why_d
id_the_sov.html
