(1) When Stalin came to power, he imposed government control over the Soviet Union’s economy. In the past, said Stalin, Russia had suffered because of its economic backwardness. In 1928, he proposed the first of several ‘five-year plans’ aimed at building heavy industry, improving transportation, and increasing farm output. He brought all economic activity under government control. The government owned all business and distributed all resources. The Soviet Union developed a command economy, in which government officials made all basic economic decisions. By contrast, in a capitalist system, the free market determines most economic decisions. Privately owned businesses compete to win the customer’s choice Mixed Results in Industry (2) Stalin’s five-year plans set high production goals, especially for heavy industry and transportation. The government pushed workers and managers to meet these goals by giving bonuses to those who succeeded - and by punishing those who did not. Between 1928 and 1939, larger factories, hydroelectric power stations and huge industrial complexes rose across the Soviet Union. Oil, coal and steel production grew. Mining expanded, and new railroads were built. (3) Despite the impressive progress in some areas, Soviet workers had little to show for their efforts. Some former peasants did become skilled factory workers or managers. Overall, though, the standard of living remained low. Central planning was often inefficient, causing shortages in some areas and surpluses in others. Many managers, concerned only with meeting production targets, turned out large quantities of low-quality goods. Consumer products such as clothing.
What does Paragraph (3) say about Soviet workers?