Agony of Reform: Commanding Heights Part 2
The global economic revolution in the 20th and 21st centuries was marked by stress, uncertainty, and challenges.
Economic foundations underwent a shift due to deficits and inflation in the 20th century. However, government attempts worldwide to address this shift were unsuccessful and did not yield the expected results.
Our country and other global economies experienced widespread unemployment, recession, and inflation as a result of free-market capitalism.
American President Ronald Reagan and British Prime Minister Margaret Thatcher were trailblazers in establishing a market economy, known as capitalism. They implemented privatization of state-owned industries and market deregulation. Their actions set an example for the global community, prompting a shift away from government control. Even countries such as Russia, once completely communist, experienced substantial growth and advantages by adopting elements of a market economy. Despite the worldwide economic downturn, Russia successfully maintained low unemployment rates and sustained economic growth unlike other nations.
Suffering from extremely high unemployment rates, poverty, and extremely low economic gain, S experienced a harsh economic condition. However, when the great depression occurred, a comparison of numbers between countries like Russia and the U.S. seemed to suggest that the capitalist system of a market economy would eventually fail, and a communist economy was the ideal alternative. Nevertheless, this belief that communism was superior to a market economy was founded on falsehood. Had Russia not lied about its government, they would have faced the same consequences of the depression, just like the U.S.
The rulers of Russia intentionally deceived their citizens about the country’s achievements and size. To prevent the truth from being revealed, the oppressive government exerted strict control over its people, media, and borders. As stated by Germino, this resulted in limited access for foreigners who were only permitted to visit specific well-developed areas of the country. Additionally, the nation relied on forced prison labor to reduce costs which led to millions of individuals being coerced into working in mines and factories against their will. These individuals endured physical harm and even death threats. Throughout history, Norilsk has represented all stages of Soviet economic development – starting as a prison camp and eventually witnessing the collapse of the economy during the 1990s (Yergin). Even in the early 1950s, its mines and factories employed 100,000 political prisoners. This shows how social, economic, and political changes can have extensive consequences for a nation.
After Josef Stalin’s death in 1953, the Soviet Union went through a phase of relaxation and rebranded itself as Russia. During this transition towards a fully communist government, there was a notable decrease in government abuse and the number of people incarcerated. But ironically, it was precisely this loosening of control by the Soviet Union that ultimately caused its downfall. The influence of the Soviets expanded to Eastern Europe, Africa, and Latin America, where socialism, planning, state control, and government ownership gained widespread acceptance.
In Asia, China under communism seemed successful and became an example to follow. Nevertheless, the actual state of the Soviet economy remained concealed behind the “Iron Curtain” (Narrator). As control and coercion diminished, productivity among Soviet citizens sharply declined. The lack of strict regulation and force over prisoners led to a decrease in their work effort, which resulted in a reduction in the production of goods. Consequently, both the Soviet Union and other communist nations in Eastern Europe faced shortages of goods and essential food items that negatively impacted the daily lives of ordinary individuals.
The communists were ultimately pushed to the brink by this fresh issue, as well as the absence of advancements in weaponry and goods. Concealing their failures was no longer possible, leading the rest of the world to finally acknowledge that communism was not the most ideal system. When a nation undergoes social, political, and economic transformations, both advantageous and disadvantageous consequences can emerge. During an economic transition, there is a chance for a recession or downturn in the country’s economy. The sale of goods may face difficulties, burdening nations with deficits.
Small businesses can experience similar challenges as Poland did during its economic transition. When a society undergoes social and political changes, much like what occurred in the Soviet Union, individuals may become more relaxed and begin to defy previous rules. To prevent chaos, new political leaders must gradually introduce and enforce new regulations. In the case of the Soviet Union, the level of strictness in governing decreased, leading people to slack off in their work. Eventually, this caused the failure of the Soviet Union and exposed all of its hidden failures.
If the old ruling method had continued, gradually implementing changes, the “royal” communist economy might have lasted longer. The hardships stem from greed, power, and money. Every country seeks dominance and control, resorting to any means necessary for power. Nations allow corporations to take big risks and if these fail, they try to hide them as long as possible, ultimately harming their nation.
When President Obama succeeded President Bush, there was a major transition in the American economy. President Obama faced various challenges such as a failing economy and involvement in a war. In his acceptance speech, he acknowledged these challenges by mentioning “two wars, a planet in peril, the worst financial crisis in a century” (Clapman). It is important to note that President Bush favored the free market, whereas President Obama leans towards a larger government. These presidents are from different democratic parties and have differing approaches to governing the country.
When Obama took office, he aimed to transform our economy into a controlled economy following a severe recession. Politically, Obama also had to explore various strategies to salvage the remnants of our country after the Bush administration. This encompassed the war, particularly the economy. In terms of politics, during his transition into office, Obama had to appoint a fresh white house staff and select a new administration. Obama had to devise a solution or justification for the bank bailouts that Bush persisted in issuing until the conclusion of his presidency.
President Obama had the challenging task of ending ongoing wars, transitioning from a free market to a controlled economy, and reinventing the middle class, which was greatly affected by the recession. He also had to address the issue of high unemployment. The documentary “Commanding Heights: Agony of Reform” provided valuable insights into the similarities between the government transitions of President Bush and Obama, as well as the historical experiences of governments and nations in the 20th and early 21st centuries.
The pain of implementing reforms in countries like Russia and India is more noticeable as our financial losses were comparable to the U.S. However, the changes in our government were more overt than in the U.S., as we transitioned from a communist economy to a capitalist one. Furthermore, I am of the opinion that although certain governmental decisions may not have been ideal in retrospect, leaders typically choose what they believe to be the best option for that specific era, often neglecting to consider future implications.
