Question

Enumerate any four drawbacks of Gorbachev's policy of Perestroika that eventually led to the collapse of the Soviet Union (1985).

Answer 1

Despite being excellent in every way, Mikhail Gorbachev's economic policies could not alter society as planned. People were disillusioned by the flat economic growth in 1988, 1989, and the preceding years. A 15% decline followed the 1990 decline in national income in 1991.

1. The Law on State Enterprises has been identified as the primary source of the crisis. Because output was determined by its value in roubles, manufacturers had little incentive to increase overall output since wages were based on it. The law decreased the output of less expensive commodities and focused on producing more costly products.
2. As a result, salaries increased, and the government needed to boost money printing. Inflation and a budget imbalance in the government were the results of this. Additionally, less was produced in terms of necessities. Because they needed soap for washing, the workers in the largest coal mining region in the USSR went on strike. They presented their demands for better living and working conditions, a sufficient and proper food supply, a profit-sharing share, and more local control over the mines with discipline and organisation.
3. Many of their requests were considered, and the government promised to restructure the industrial sector.
4. Unfortunately, because of how bad things had gotten economically, by early 1990, about 25% of people lived in poverty. Large families, the jobless, and pensioners were the most severely impacted groups. One of the leading causes of the Soviet Union's breakdown was the economic crisis.