For instance, in 1988, the U.S. was confronted with high inflation and decreased consumer spending. While prices rose quickly, the nation's people began to save their money, rather than invent it in the economy. It was President Ronald Reagan's ideas to reduce the government's involvement in the situation that helped to improve economic conditions. By cutting taxes to increase consumer spending, and by restricting the supply of money in the economy, he reduced the inflation from 13% to 4%. Instead of actively taking part in controlling all aspects of the economy, the government helped to solve the problem of inflation through limited involvement in the situation. The nation's people were still free to make their own economic decisions, and by reducing the taxes, citizens were able to spend more in the market. With more money begin invested in the economy and in individually owned business, there was also a demand for in the economy and individually owned businesses, there was also a demand for workers to produce the goods that the consumers now desired. By taking little government action, Regan stirred the economy, decreased unemployment involvement was necessary in the repairing of the country's economy, the amount of state control was limited.Although the United States Successfully dealt with their economic problem in 1988 with little government involvement, the USSR has been known to heavily involve the direction of the state in the planning of former economic systems. For instance, after World War I, Russia was a country in distress, attempting to deal with the torment of the war. Revolts were occurring frequently, and Lenin, the leader of the Bolsheviks, overthrew the former government. In am attempt to save the country's people and their economy, Lenin nationalized almost everything, and forced the peasants to give their surplus of food to the workers. It was the excessive amount of government control, though, that caused the coun...
