5-30-90 . . . The Soviet Union [i.e., the Union of Soviet Socialist Republics] is moving toward free and open markets, or so goes the prevailing talk. This constitutes a radical change from the planned, centralized economy of the past. The problem is that the transition is not easy. Entire social structures—planning committees, for example—have been built around the Soviet economy. Attitudes of public officials have been formed toward centralized decisionmaking concerning production and consumption. People’s livelihoods depend on making economic decisions for the citizenry. And yet, everyone, including Soviet President Mikhail Gorbachev, acknowledges that the centralized economy has failed miserably to deliver the goods. Soviet citizens—even those in major metropolitan areas such as Moscow—regularly go without soap, fresh fruits, vegetables, and basic consumer items. People spend hours waiting in line for toilet paper. Naturally, the shift delights Western conservatives, who have long argued that capitalism is superior to communism both economically (in terms of efficiency) and morally (in terms of protecting people’s rights). It’ll be interesting to see whether this change in Soviet policy works. A centralized economy cannot be dismantled overnight, and the changes are bound to cause dismay and protest among the Soviet people, but it’s probably in the long-term best interests of the Soviets to open up their markets. A market is a good mechanism for producing what the people want and need and getting it where it needs to be. The downside, of course, is that people without resources fare badly in the marketplace. I assume that the government will not let these people fall through the cracks. 5-30-90 . . . The Soviet Union [i.e., the Union of Soviet Socialist Republics] is moving toward free and open markets, or so goes the prevailing talk. This constitutes a radical change from the planned, centralized economy of the past. The problem is that the transition is not easy. Entire social structures—planning committees, for example—have been built around the Soviet economy. Attitudes of public officials have been formed toward centralized decisionmaking concerning production and consumption. People’s livelihoods depend on making economic decisions for the citizenry. And yet, everyone, including Soviet President Mikhail Gorbachev, acknowledges that the centralized economy has failed miserably to deliver the goods. Soviet citizens—even those in major metropolitan areas such as Moscow—regularly go without soap, fresh fruits, vegetables, and basic consumer items. People spend hours waiting in line for toilet paper. Naturally, the shift delights Western conservatives, who have long argued that capitalism is superior to communism both economically (in terms of efficiency) and morally (in terms of protecting people’s rights). It’ll be interesting to see whether this change in Soviet policy works. A centralized economy cannot be dismantled overnight, and the changes are bound to cause dismay and protest among the Soviet people, but it’s probably in the long-term best interests of the Soviets to open up their markets. A market is a good mechanism for producing what the people want and need and getting it where it needs to be. The downside, of course, is that people without resources fare badly in the marketplace. I assume that the government will not let these people fall through the cracks.Twenty Years Ago
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Keith Burgess-Jackson, J.D., Ph.D. 