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                    English
                
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                4 / 882             | 
        
                
    
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Governmental price setting in combination with a shortage of consumer goods gave no incentive for workers to increase their wages by working harder, more efficiently or by being innovative.
vii. Price setting led to inefficiencies as the price for a good did not reflect its real value (e.g. artificially low energy prices led to waste)...
        
        
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artificially low energy prices led to waste).
III. Market Reforms in a Phase of Transition
All these shortcomings, and in the case of Russia the economic burden of military strength, led to the decline of production - and eventually to the collapse of the Soviet Union, of which Russia was the largest part...
        
        
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            General points of the essay
            
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