Soviet Economic Model

The Soviet Economic Model was a system where the government owned and controlled major industries, farms, and resources. Instead of individuals or private companies making economic decisions, the state planned production, distribution, and prices through central planning. This aimed to promote equality and rapid industrial growth but often led to inefficiencies, shortages, and lack of innovation due to limited competition and consumer choice. The model prioritized collective goals over individual profit, emphasizing state control over economic activity to support political objectives.