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Why do some countries have such bad economies?
Like russia, for instance. Why are the people there so poor and why is their economy so unstable?
why do you thik economics in Russia is bad??
Because of communism (where the government owns all the buisnesses). Give you two senarios. Capitalism -You own and run the buisness, you are in control of the price. You realize that the harder you work, the better your buisness. This causes you to pay close attention to the quality of your product. Communism -Government runs the buisness, you have nothing invested in it and you are paid the same as everyone else. You have no reason to work hard because by doing so you will still make the same amount of money as everyone else. You dont care because no matter how bad the standards fall you can lose work because there is no competition. This means that the government is able to raise the prices as much as they want and the people are forced to pay it because there is no other alternative.
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