The Soviet economy was a centrally planned system where the government controlled all aspects of production and distribution. This meant that decisions about what to produce, how much to produce, and at what price were made by state planners rather than by market forces. The economy focused on heavy industry, agriculture, and military production, often at the expense of consumer goods. The Soviet Union, established in 1922, aimed to create a classless society through its economic policies. However, inefficiencies and shortages became common, leading to a decline in living standards. By the late 1980s, these economic challenges contributed to the eventual dissolution of the Soviet Union in 1991.