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Old February 4th, 2018, 09:59 AM   #41
RNG
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Originally Posted by hoosier88 View Post
Yah, Sears is on the ropes, apparently. & where is the USSR these days? If the economics of central control were efficient & etc., Wouldn't the USSR still be a going concern? I thought their economy collapsed, & when it couldn't produce for the elites, then the whole edifice tumbled down. That's not what happened?
One of the important factors was that they spent so much on their military that the economy reached a tipping point and went south.

Think about it.
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Old February 4th, 2018, 11:22 AM   #42
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One of the important factors was that they (the USSR) spent so much on their military that the economy reached a tipping point and went south.

Think about it.
Yah. The USSR's economy's main problem - they couldn't account for nor allocate costs in real World time. They hoped to apply ideology & so drive/manage the economy - but (in the West's experience) you need to attach real money to expenditures & processes, & to income as well. Otherwise, you're operating in the dark. The USSR could barely feed itself, & relied on exports of oil/natgas, various ores, caviar, etc. to cover their foreign policy & foreign aid, arms sales on credit, POL as a strategic lever, & so on - & yes, including their military, especially building up a blue water navy towards the end.

With the ideological distortions & unreliable production/input data, the USSR economists had a hard time figuring out if they were gaining or losing economic ground. The Western economies have other problems, but not that one. The bottom line - as long as the books are honest - tells you if you're winning or losing.

Yah, the Soviets spent a lot of time & effort & resources in trying to make their heavy industry productive - to support their military & space efforts, & to show the way to the fledgling Soviet-style countries they were mentoring.

In that sense, it didn't matter if the USSR was throwing away money on their military or arts or building Soviet-style stadia - the return on investment simply wasn't there, & they lost money on too many transactions. When even the internal (& vastly rigged) accounting failed, the whole enterprise suffered a massive loss of liquidity & confidence. The Warsaw Pact nations peeled away, & absent any consequences, the entire system went belly-up.
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