Please enable JavaScript.
Coggle requires JavaScript to display documents.
How successful was the state socialist experiment? - Coggle Diagram
How successful was the state socialist experiment?
structural change
reallocation: agriculture to services
rebuttal: Argentina grew rich from its agriculture however.
large population employed
health and human capital formation
increased life expectancy and education levels
Rebuttal: Southern Europe and USSR started at similar levels. by 1990, USSR almost hit 70 Europe was at 76.7.
low levels of inequality
major aim: increase wages and decrease disparities
gap between boss and lowest paid decreased to 6.5:1 in 1975
investment policy
Argument: capital spent on old manufacturing facilities
large capital spent low output
Argument: Japan as example. huge increase in steel production
food shortages
increased wages but subsidised industries so low prices. demand>supply
Technology failures
Argument: TFP decreased and little R&D into new tech
rebuttal: cement industry did very well due to new processes.
Arms Race: 12% of GDP spent defence 1966-1970
most successful non-OECD country
Argument: catch-up due to low income in 1928 and high growth
did very well until 1960s
Rebuttal: failed to achieve western standard of living
counter-rebuttal: must compare with similar income countries. did very well compared to them