Economics Explained The Economy of the Soviet Union
May 18, 2024
Exploring the wealth gap in 1917 Russia and the Marxist ideals driving the revolution, the deliberate inefficiency strategy in Soviet factories, the focus on industrial production over consumer goods impacting productivity, the shift to consumerism post-Stalin leading to economic stagnation.
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Roots In Pre-Revolution Inequality
- Russia in 1917 was extremely unequal, fueling revolution.
- Marxist ideas framed labour seizing land and capital as the solution.
Five-Year Plans Centralized Targets
- Stalin launched five-year plans that set strict industrial and food targets.
- They monitored inputs, outputs, prices, and throughput across the economy.
Data Became A Convenient Lie
- Ambitious quotas and fear led workers and managers to falsify output numbers.
- The entire reporting chain colluded to hide real performance to avoid punishment.