Facultad de Ciencias Económicas | fce.ufm.edu | 3 Lecciones

The «Planned Chaos»: Soviet Economy

Yasmin Valdez  | 09 de noviembre de 2018  | Vistas: 34

Capitalism Central Planning Economy Government

Economic systems can affect society in different ways. Anna Ebeling shares the Soviet Union economic history and her experience with communism and socialism.

Ebeling presents the Russian economy before the first world war and relates it to commercial banking, lack of industries, modern banking, businesses, and more. She shares how this country's economy was created from a mix of backwardness and modernity, as well as the results of this system.

This is economic history; catastrophes are what planned economy and violation of property right does, maybe not to that extent but if you start playing with the market economy those result can crawl up on you without even noticing.”

Anna comments the reasons that lead to the nationalization of property, and how they wrecked their economy because of the ignorance of managing finance, lack of interest on investing in industrial ventures, monopolies,  and dependence of government.

She includes the fight of Russia against Germany, revealing the inability to maintain their troops bringing inflation, collapse, hunger and a total crisis in this country. Thereupon, Ebeling explains the Russian socialist revolution of 1917, what is war communism, the effects of a planned economy and violation of property rights.

The economy back of the Russian empire was broken beyond repair, the socialist promises of total equality and effortless plentitude gained more supporters; the era of collectivism was about to begin.”

Further on, Anna mentions the effects of this crisis climate, the results in the Russian community because of the economic miracle, and how Lenin reacted to these changes of reactivation of the economy, market, and capitalism. Along, she points out the way the market economy ended with Staling and how he liquidated the Kulaks, that were the productive and successful capitalist-oriented farmers.

When people are hungry, they riot, and we see that the attempt to run the economy like a military force extended to the requisition and nationalization of everything failed.“

She comments on the largest slave labor empire in human history and concludes sharing some pictures of the results a, centrally planned economy, causes. Also, she includes her experience been raised in Russia and what the country's current economic status is like.

Now watch, Two Economists Travel The Unfree World, Conclusions on Socialism



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Universidad Francisco Marroquín