06-13-2014, 07:58 PM
I ran into an article about that whilst looking up Soviet built fridges, about how there was a Grade A and Grade B to industrial and agricultural production. Grade B was consumer goods of all kinds, and the distribution system was bizarre to say the least. Then there were the various measures the planners took to try to cure imbalances, like workers not having enough financial incentive to improve productivity. But then having fixed that they could end up with too much take home pay, and not enough goods to buy it with, so would either work less or save whatever they earned rather then spending it.
There was more to it then that but basically it explains why you could not have a fridge with bologna, kielbasa, and cheese in the former USSR. It is also a textbook example of why economists are largely useless in terms of making an economy work.
Regards
Arran
There was more to it then that but basically it explains why you could not have a fridge with bologna, kielbasa, and cheese in the former USSR. It is also a textbook example of why economists are largely useless in terms of making an economy work.
Regards
Arran