Through out the 1970’s all the way to the 1980’s the Soviet Union was seen as one of the most stable political country in the world. Their political system was very strong and only appeared to be getting stronger and stronger by the day. The Soviet Union has various problems that contributed to its downfall. Some reasons that the Soviet Union collapsed were because of its economy, decentralization , the lack of economical incentives and excessive military focus.
Even though the Soviet Union was one of the politically strongest countries in the world, several problems in its government and economy played a part in it downfall.
The economy wasn’t doing so good because the Soviet Union had grown to a size that was way too large to be managed by state planners. This resulted in economic policies failing which got in the way of innovations. Sometimes the managers would alter numbers and data to show that requirements and goals were being met. When numbers are changed they don’t accurately tell how good or bad the company is doing and it can cause the company to go out of business and eventually collapsed. When a company starts to go down in value it has to start producing twice the amount of materials or products to get back on its feet and by having altered numbers that aren’t true the business is getting hurt by the own people that run it. Decentralization and the lack of economical incentives were also some of the many reasons that damaged the Soviet’s economy as well as excessive military focus. For example mine workers, they weren’t mining anything because they didn’t have any incentives to work for.
When the Soviet Union allowed individual republics more freedom, tax revenues were withheld.
The Soviet’s military focus was really high which is also why they had economic problems.
Instead of having their funds and money go to companies that could be useful the gave around
70% of their money to the military.