Free Market vs. Controlled Market – Why Countries Should Be Careful dealing with Marxists Countries!

Consider reading the video below and understand what’s happening between Ukrain and Russia because the annexation of Crimea by the Russian Federation is a very bland topic if you understand basic economics.

Being that Crimea was one of Ukraine’s most prosperous regions and strategic regions for Russia it was in Russia’s best interests to annex the region. Now if you read most sources regarding the Crimea

Annexation of Crimea by the Russian Federation

So if you listen to the video above what you’ll notice is that the situations appear to be more complicated than it would be had Ukraine used it’s own energy resources to produce energy. Well, at this point it might make you wonder why wouldn’t Ukraine be energy dependent? Well, obviously political corruption is the reason why Ukraine doesn’t have energy independence, but the real question is how did this happen in the first place? The reality is and this is a harsh reality is that laziness has its penalties and if a politician tells a people the truth that in order to be energy independent sacrifices, mainly financial sacrifices have to be made, chances are the politician will be voted outed out and replaced with a politician who gives the people easier answers.

Basically, Ukraine is in the situation it’s in now because its prior politicians gave its people easy answers to save money and minimize inflation. Now, the penalty to all of this is that Ukraine has yet to figure out a way to be energy independent from Russia and this, of course, compromises Ukraine’s sovereignty. This is not to say that Crimea was annexed because of Ukraine not paying its energy bills, however, it is saying that if Ukraine decides to side with the European Union on particular issues that harm the Russian economy, the Russians can raise the price of Gas at their leisure.

Russian being a Marxist derived country has a controlled economy, while Ukraine is working towards a free market. The problem with a free market economy is if you’re reliant on a controlled economy to provide you very important resources, well, your economy will never be free. This is something all countries who deal with China, namely the Chinese communist party should consider as this planet we live on becomes ever more reliant on Marxist derived countries like China and Russia. Many people will say that Russia and China aren’t fully communist? Yes, but those economies are controlled and if you’re looking at the economies of most western nations they’re becoming more and more controlled every year with every legislation and regulation passed into office.

How do free market economies limit their dependence on controlled economies? Well, Politicians of free market capitalistic countries have to be honest with their citizens and tell them the truth, that they can’t get something for nothing.

Interesting times ahead.