How did the economic ideologies of the United States and the Soviet Union differ?

The economic ideologies of the United States and the Soviet Union during the Cold War period (approximately 1947-1991) were fundamentally different, based primarily on the principles of capitalism and socialism, respectively.

In the United States, the economic system was and remains based on capitalism. This system is characterized by private ownership of the means of production, such as land, factories, and businesses. Economic decisions are shaped by the free market, where supply and demand determine prices and the production of goods and services. Competition is encouraged, as it is believed to foster innovation and efficiency. Individuals and corporations operate primarily for profit, and the government's role is more limited, traditionally to only regulate to prevent monopolies and ensure fair practices.

Conversely, the Soviet Union was based on a socialist or communist economic ideology, specifically a form of Marxist-Leninist socialism. In this system, the means of production were owned collectively or by the state. The government planned and controlled the economy, deciding what to produce, how much to produce, and setting the prices. The idea was to distribute resources and wealth more evenly across society, with the aim of reducing inequality. There was almost no private enterprise, and economic goals were planned by the government in the form of Five-Year Plans.

To summarize, the major differences were: - Private vs state ownership of resources and businesses - Market-driven vs centrally planned economy - Profit motive vs collective distribution of wealth and resources