Alienation and the Soviet Economy: The Collapse of the Socialist Era (Independent Studies in Political Economy)

In 1971 this seminal book pointed out the fatal defects of Soviet economic organization that would lead to the collapse of the Soviet economy. Two decades later the book was reissued without a word changed with new introductions. Paul Craig Roberts tells how reality triumphed over Marxism, and he examines the implications for the future of Russia and eastern Europe. In 1971 Roberts created a firestorm among Sovietologists with his argument that the economies of the USSR and its East Bloc allies were doomed because their “planned” economies produced outputs that were worth less than the inputs. Roberts demonstrates that Soviet managers organize production by interpreting gross output indicators instead of price and profit movements, with the consequence that the Soviet economy is organized polycentrically like a market economy but devoid of economic rationality. Roberts shows that Marxist goals are expressions of passion for conviviality and represent not experience but inordinate aspirations. The reissue of this book in 1990 was welcomed by members of the Economic Institute of the U.S.S.R. Academy of Sciences.2 page view. "The first edition of this seminal book in 1971 pointed out the fatal defects of Marxist theory that would lead to the collapse of the Soviet economy. In this revised edition, Paul Craig Roberts examines how reality triumphed over Marxist theory and the implications for the future of Russia and eastern Europe. In 1971, Roberts created a firestorm among professional Sovietologists by proclaiming that the economies of the USSR and its East Bloc allies were doomed because their "planned" economies were, in reality, anything but planned. Expanding on his original ideas, Roberts demonstrates in this book the fatal shortcomings of Marxist economies, ranging from misallocation of resources to ersatz capitalistic concepts grafted onto a system that calls for production without regard to profit. Roberts argues that the economies of the nations emerging from the USSR's collapse must grasp the profound truths in this book if they are to become viable." -- Publisher Chapter 1: Alienation and Central Planning in Marx Chapter 2: “War Communism”—Product of Marxian Ideas Chapter 3: Polycentricity and Hierarchy Chapter 4: The Polycentric Soviet Economy Chapter 5: Oskar Lange’s Theory of Socialist Planning Chapter 6: Speculative Excess as a Force in History Paul Craig Roberts ; Foreword By Aaron Wildavsky. Includes Bibliographical References And Index.