comes in an economic crisis, many other benefits can also result for a nation that has little state control. For instance, in the United States, the prices of the goods made available to the consumers are derived from a system called the "price system". In this system, the government does not participate in the forming of the prices of the products. Instead, the majority of the goods are sold at the prices that the consumers are willing to pay. By looking at the consumers' demands, and also at the production costs and profits desired, individual corporations set specific prices on their goods. Since the consumer has the freedom to choose whatever product they desire from any business, corporations keep their prices in a range that will attract the most business for the most amount of profit. With such a little government involvement in the pricing of the goods, consumers and business work together to reach fair prices.Since the former USSR contained a large amount of government involvement in their economy, a system other than the "price system" was used to derive the prices of goods. Instead of allowing the forces of the free market to determine the cost of an item, the communist government decided the individual prices. This resulted in a price control by the government over the people since they could charge their citizens and price. Because the state controlled all aspects of the economy, there were no other oppurtunities for individuals to seek a more reasonable price. By instilling complete control over the economy, Russia's government created their own high prices that all citizens had no other choice but to pay.Aside from affecting the prices, the amount of government involvement in a nation's economy can also effect the type of goods that are produced. For example, with little government involvement in the United States privately owned corporations produce what the citizens have in demand. In order to be a successful corporatio...
