That is the flag of the Soviet Union. The Soviet Union was a federation of nations such as Russia, Ukraine, etc.
Many think that it was a failed experiment in government. Most citizens of the Soviet Union were extremely poor. They would have to wait in long lines just for food. They had lots of money, but due to inflation, that money was not worth much. And even if they did have enough money to actually buy something, the stores were usually poorly stocked. The problem became so severe that an underground form of commerce emerged—a black market. It was a matter of survival.
The problem lay in a fact of human nature. Most people either work for themselves and for their families, or they don’t work at all. They simply are not motivated to work hard and smart without compensation. That is why there was nothing to buy in the stores. No one was making those products.
Most people don’t have the vision necessary to see the Soviet Union as anything but a failure. And they extend that criticism to the style of government that they had—socialism. But I think that it was a good ideal with poor implementation.
Socialism is supposed to liberate the people from the ills of capitalism. In pure capitalism there are many problems. The main problem is that the poor are essentially slaves to the rich. If they disobey orders, even stupid ones, they are usually fired. That firing has an incredible sting in capitalism, but in socialism they theoretically still get a paycheck.
Social programs mixed with capitalism (i.e. the system we have now) is a step above both capitalism and socialism, but it is still far from perfect. Let’s start with minimum wage. It allows people to earn more money, but also it increases the difficultly in getting a job, and you don’t get a paycheck if you get fired, so getting fired has an even worse sting than in pure capitalism.
Next there is welfare/social security checks and food stamps. You actually get punished for getting a job. The government will stop the checks, and you may have less income than when you were unemployed. It’s an even worse trap for motivation than pure socialism. If you work in pure socialism, you don’t get paid any less. Truly you don’t get paid any more money in pure socialism, but you don’t lose your benefits.
There is a solution. I call it enhanced capitalism. In it you get paid the same amount as if you weren’t working, in addition to your work paycheck. It eliminates the problem of minimum wage and of financial aid. You may work for as low of a paycheck as you want which could catapult your career, since a company would take less of a risk in training you. You could do the job that you love and still get paid, even if not much pay is coming from your employer.
Enhanced capitalism also lets people out of the welfare trap. If you do get a job that pays well, then you will still get your government check. That’s motivation to work that isn’t present in our current economic system. More well-paid workers is good for the economy and good for lenders.