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China's government (and Zedong) tried to set up a more modernized society. He set up camps called communes. The government dictated what jobs people would get, and how much they were paid. It failed when peasants revolted, and when people got paid for sitting around instead of working.Even the people that did work hard got paid the same as slackers. Famine, drought, and floods also contributed to China's problems.

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China's government took over people's farms and made the farmers work for an amount of food chosen by the government, regardless of how much food was produced.

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Mao's three goals was better life for the poor, become a modern economy, and restore China as a leading power.
China did not reach these goals due to a huge population that needed to be fed, clothed, housed, and educated. War had destroyed industry and disrupted farming in china.