How Did "Free Markets" Start? Page 3 of 5

 

2. Farmers Are Let Loose
After the People's Communes were disbanded, the government-run quota systems and subsidies for farmers were eliminated.  They were permitted to choose what to grow on their small plots, to set their own prices and to pocket their profits without paying any taxes!
At the same time,  the government also withdrew from the distribution of fresh produce.  So farmers had to find their own way to sell what they grew. 

What developed was a free market system which has been so successful that independent farmers now account for 80-85% of all vegetables sold in China, with only 15-20% provided from state-owned farms.
Many farmers have become successful.

 

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