Part 8/10:
The Seeds of Collapse: Economic Stagnation and Inefficiency
By the late 1970s, growth in the Soviet economy began to wane as it shifted from expansive industrial growth to stagnation, unable to innovate or adapt. The heavy emphasis on military production, coupled with rigid state controls and a lack of incentives for productivity or innovation, led to systemic inefficiencies that compounded over time.
As the economy struggled to maintain growth, the Soviet Union grew unable to compete with the burgeoning economies of the West, leading to a widening gap in technological and economic prowess. Political leaders remained entrenched in power, resisting necessary reforms, which stifled the potential for adaptive economic policies that could have spurred growth.