Weaknesses of a planned economy: why the USSR failed to implement Marx's ideas

The idea of a planned economy, i.e. a centralized distribution of resources based on social needs, attracts supporters who want to avoid the crises, rising prices, and unemployment that are characteristic of market systems. This model is inspired by the works of Karl Marx, who criticized the market economy for its unfair distribution of wealth and instability.
Despite the fact that Marx did not propose practical mechanisms for implementing centralized planning, it was the Soviet Union that first attempted to implement his idea.
The Soviet model of a planned economy made it possible to mobilize resources for large industrial projects and achieve high rates of industrialization, which brought the USSR into the ranks of the world's strongest powers. However, as the economy grew more complex, planning became more difficult. By the mid-20th century, Gosplan faced the task of taking into account the needs not only for the construction of factories and infrastructure, but also for the production of a wide range of consumer goods, which turned out to be virtually impossible.
For example, mass production often led to shortages of some goods and overproduction of others. Officials decided which goods were necessary, which often led to the loss of promising innovations: Soviet inventions in the field of computers and cellular communications did not receive support, since they seemed unimportant in the centralized system. As a result, Western companies retained their leadership in the market race for technological development, flexibly adapting to demand and competition.
It is worth noting that even in countries with a market economy, there is a certain level of planning: state budgets are drawn up for years in advance, and infrastructure projects and social programs require long-term planning. However, unlike a centrally planned economy, market mechanisms allow for a flexible response to demand, adjusting output, introducing innovations, and eliminating inefficient production – all of which makes the economy more resilient to crises and competitive.
The rejection of market elements of the economy has repeatedly demonstrated its unviability. In conditions of centralized management, flexibility is lost, and the lack of competition and independent decision-making slows down the development of technologies and the introduction of innovations.
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