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DanielleElmas [232]
3 years ago
8

What two policies did the last Soviet leader implement to assist in reforming the USSR?

History
1 answer:
cestrela7 [59]3 years ago
3 0

Answer:

In May 1988, Gorbachev introduced a new policy that allowed for the creation of limited co-operative businesses within the Soviet Union, which led to the rise of privately owned stores, restaurants and manufacturers. Not since the short-lived New Economic Policy of Vladimir Lenin, instituted in 1922 after the Russian civil war, had aspects of free-market capitalism been permitted in the U.S.S.R.

Explanation:

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Historical context:

The basic principles of capitalism were laid out by Scottish philosopher Adam Smith in his influential book published in 1776:  <em>An Inquiry into the Nature and Causes of the Wealth of Nations.</em>  The Nobel-prize winning 20th century economist Milton Friedman said of Adam Smith, "“The key insight of Adam Smith's Wealth of Nations is misleadingly simple: If an exchange between two parties is voluntary, it will not take place unless both believe they will benefit from it."  Smith argued for such voluntary exchanges within a free market system.  He labeled the government-manipulated economic system that was prevailing in his day as "mercantilism," a system in which governments specifically authorized some merchants as the official agents of commerce (rather than endorsing free enterprise).  The mercantilist system also viewed wealth as though there were a fixed amount of it available in the world, represented by precious metals such as gold and silver, and that nations were in competition over who got more of that fixed amount of world wealth.  Smith saw that wealth was something that could be created and increased through voluntary exchange and free trade.  Smith's ideas formed the basis for what we have come to know as capitalism.  For Smith, the expansion of trade that occurred because of the discovery of the Americas and the discovery of sea routes to Asia were ways that wealth could be exchanged and increased more readily.

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Explanation:

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Ehm, Robert Fulton is best known for fully developing the first successful commercial steamboat.
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