Ukraine Set to Surrender 25% of it's Territory to Russia
(media.communities.win)
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Right, Gorbachev wanted to rescue the USSR economy, but he did not intend to abandon the centrally planned economy entirely.
Price controls remained in place, and they still controlled the means of production. By 1990, the government had virtually lost control over economic conditions. Government spending increased sharply as more unprofitable enterprises required state support and consumer price subsidies continued. Tax revenues declined because local governments withheld tax revenues from the central government in a climate of growing regional autonomy. The elimination of central control over production decisions, especially in the consumer goods sector, led to the breakdown in traditional supply-demand relationships without contributing to the formation of new ones. Thus, instead of streamlining the system, Gorbachev’s decentralization caused new production bottlenecks.
Good post.