During the first half of the 20th Century, the Soviet Union had excellent economic growth, with...

During the first half of the 20^th Century, the Soviet Union had excellent economic growth, with socialism. Friedrich von Hayek nevertheless predicted back in 1945 that the socialist counties would go into future economic decline and eventually collapse. Give and fully explain two different reasons why Hayek believed that the Soviet Union was headed for a long run collapse. With each reason, also give what the Soviet Union tried to do to prevent the problem identified by Hayek?

Expert Solution

Solution For the above Problem:

A

Soviet initial growth was mainly due to closed economy and government intervention ,incentives,and direct control of government on market

1928-1940	GNP 5.8%
1950-1960	5.7%
1960-1970	5.2%

Soviet also adopt west technology and finance to implement and utilize

focus was also on heavy industrial growth and urbanisation

Later central policy became difficult to implement on ground level,and also borrowing capacity also decline

1970-1980

GNP2.3%

B

Freidrich von hayek intrepreted that market to be allowed to control price of commodities as market having maximum participants.prices to be determined on demand and supply

Market freedom encourage innovation and discoveries which has to be supplemented by incentive for new product growth

Free market has to be legalised by constitution which ensure Fundamental right propert right etc ,which provide a sense of security in economy

Hayek predicted soviet model failure mainly due to its closed economy and welfarist approch of government in economic development of country

******************************************************Thank You**********************************************

Rahul Sunny answered 2 years ago

A, B. During the first half of the 20th Century, the Soviet Union had excellent economic...

A, B. During the first half of the 20th Century, the Soviet Union had excellent economic growth, with socialism. Friedrich von Hayek nevertheless predicted back in 1945 that the socialist counties would go into future economic decline and eventually collapse. Separately answering as parts A and B, give and fully explain two different reasons why Hayek believed that the Soviet Union was headed for a long run collapse. With each reason, also give what the Soviet Union tried to do...

2. A, B. During the first half of the 20th Century, the Soviet Union had excellent...

2. A, B. During the first half of the 20th Century, the Soviet Union had excellent economic growth, with socialism. Friedrich von Hayek nevertheless predicted back in 1945 that the socialist counties would go into future economic decline and eventually collapse. Separately answering as parts A and B, give and fully explain two different reasons why Hayek believed that the Soviet Union was headed for a long run collapse. With each reason, also give what the Soviet Union tried to...

A. The Soviet Union once claimed sizable economic growth. Describe a few methods used by the...

A. The Soviet Union once claimed sizable economic growth. Describe a few methods used by the Soviet Union to create economic growth. What methods would have been used to demonstrate the Soviet Union’s economic growth? B. During its later years, the Soviet Union had negative economic growth. Describe a few problems that created Soviet economic decline.

in the second half of the 20th century, the city of phoenix, Arizona exploded in size....

in the second half of the 20th century, the city of phoenix, Arizona exploded in size. between 1990 and 2000 the population of phoenix increased exponentially. in 1990 the population was 928,000 people, and in 2000. the population was 1,377,000. a) what is the 1 decade (10 year) growth factor for the population of phoenix since 1990? b) write a function f(d), that determines the population of phoenix in terms of the number of decades, d, that have elapsed since...

Discuss The Economics of Information in the second half of the 20th Century (maximum 1,000)

There was much progress in nursing during the early to middle part of the 20th century...

There was much progress in nursing during the early to middle part of the 20th century (1900 through the late 1930s). After reading the textbook and the lesson for this week, describe one area of change in nursing during that time period that intrigues you. Discuss how that area could be applied today. No screenshots. Please type the answer.

1. After the dissolution of the Soviet Union in 1991, the Russian Federation had a lot...

1. After the dissolution of the Soviet Union in 1991, the Russian Federation had a lot of issues building a strong capitalistic economy. During the period of privatization, a lot of people were unemployed and had no clue how a free market economy works. All this factor resulted in the formation of bandit groups and gangs and a huge unemployment rate in the whole country. Based on the theories created by John Maynard Keynes, how should the government of the...

1. a) A lot of experiments conducted during the 20th century - from Milgram to Harlow's...

1. a) A lot of experiments conducted during the 20th century - from Milgram to Harlow's studies - would be considered unethical by today's standards. Do you think that the groundbreaking results we remember from these experiments somehow justify their ethical issues? Why? b) Do you think the nature-nurture debate has been solved by modern psychology? Please answer the each of the part of above question in depth (as much as you can like 300 words or more) and quality...

After the collapse of the Soviet Union, what were the main economic difficulties faced by Ukraine...

After the collapse of the Soviet Union, what were the main economic difficulties faced by Ukraine between 1991 and 1994? How to understand these economic difficulties.

During October 1962 the United States and the Soviet Union engaged in a stand off over...

During October 1962 the United States and the Soviet Union engaged in a stand off over the Soviet Union’s attempted deployment of nuclear missiles to Cuba. We will model part of the crisis dynamics as they looked on October 22, 1962 when President Kennedy announced the naval blockade of Cuba stating that Soviet ships carrying nuclear missile equipment would be turned back if attempting to enter Cuba. Consider this a sequential move game where the first mover Premier Krushchev can...

Question