The Exhaustion of Soviet Communist Regime_ May God Save Russia

RICARDO GOMES RODRIGUES
18 de fev. de 2021
6 min de leitura

The Soviet Development Model

When in the late 1950s, the former Soviet Union launched the first artificial satellite into space, the worldwide commotion was enormous and demonstrated that since the Communist Revolution of 1917, Russia's Economic Growth had been spectacular to reach similar levels of the United States’ industrial development begun at the end of its Civil War around year 1870.

By the time, the Soviet communist regime had achieved in just 43 years something quite similar to what had taken the United States 90 years until 1960. It can be said that there were, at that time, certain profound similarities between both models of accelerated industrial development with surprising results of mutual virtuosities and recognized merits; hanging the balance, at that time, much more favorable to Russian Soviet Communism than for North American Capitalism.

Since 1960, the centralized planning of the typically communist economy was undeniably perceived by almost everyone as the undoubtful answer for developing countries, and more, that the consequent communist militarization of society was unquestionable the future for the social development, establishing a parallel between military organizations, communist party organizations, and the organization of the state itself. The policies based on this militaristic view of "Command and Control" of the economy, based on the spectacular results achieved by the Soviets in just over 40 years, seemed the insuperable remedy for poverty and underdevelopment.

The Soviet Model Crisis

From 1960 on, the militarized command of the centralized economy began to present problems, and despite the almost absolute control that Soviet public planners had over the economy; it could not be hidden the ineffectiveness of the pricing policies established that refused to behave as expected by their models.

The mismatch between supply and demand and the consequent monetary policies that regulated, in the end, interest and inflation, just as in capitalism, began to differ significantly from what was expected, despite the apparent and almost absolute control that communist militarized command policies had over the economic agents, such as for families and the government.

Despite the power that the Russian Soviets had at their disposal; the behavior of the economic agents deteriorated year by year to show negative growth not only throughout the economic processes, but also in social and political activities.

It was clear to the Russian Communists that the Revolution had lost its enthusiasm starting 1960 on, when the Soviet Union was ahead in face of the space race. This seemingly contradictory behavior was confusing the public planner of that time very much so, and the question was: what was going on, and what would be the appropriate remedies to correct these distortions.

It grew that way, in the perception of the Soviet communist planner that, in fact, the Revolution had reached a certain peak around 1960 and from there on it had begun a slower but firm decay process; reflecting a certain loss of enthusiasm throughout Russian society, whether in economic, in political and social activities, presenting negative economic growth not only for the economy, but also for population growth, industrial production and for almost all of its related processes.

The Loss of Revolution’s Enthusiasm and the Crisis of 1929

The question of what was really going on within the Soviet Communist Regime remained elusively waiting for a better scientific explanation and the due definition of a policy that would correct these problems and distortions. The scientific explanation eventually came; however, it did not serve in any way to define a corrective policy or a definition of an effective remedy.

All possible scientific procedures, exhaustive data analysis, using most modern mathematical and computational techniques were used throughout the 1960s and 1970s; only to reaffirm that all the processes of economic, social and political development of the Soviet Revolution had peaked in 1960 and since then they had begun an inexorable process of decay.

What's more, there were no possible corrective measures that could alter this decay despite the almost absolute control that the communist public planners had over Soviet society. And the question remained elusively about what was causing this decay so inexorably.

The phenomenon was so surprising that despite the current Cold War the problem was shared with the Americans; when then came to light the post-war US military governments' investigation into the 1929 crisis, which had concluded that the main cause of the severity of the economic depression, at that time, had been overly high stakes with an epicenter on the Wall Street stock market.

It was then perceived a strong correlation between the 1929 crisis of severe depression and the accelerated decay of the Soviet communist regime. And that, if for the North American capitalist system, the epicenter had been the excessively high stakes from Wall Street; in the case of the Soviets, these excessive bets were represented by the immense amount of fiduciary money (Fiat Money) that had been thrown into the economy; and that this fact had been responsible for the tremendous momentum experienced in the Soviet Union Economy from 1917 to 1960; and, even more, that after World War II, when in the eagerness of the fierce competitions over the Cold War, an even greater amount of money had been thrown into the Soviet economy, promoting a spectacular growth that reached its peak in 1960 to just soon after fade away.

Changing Courses in Russia

Although, despite being tightly controlled by Soviet public planners, these monetary resources had generated immensely high stakes over the entire Soviet industrial complex, which from 1960 had reached its peak and since then had begun an inexorable deflationary process that would ultimately lead to the death of the system itself.

Based upon these analyses, Russian society takes another turn. The Soviet Communist System is dismantled and Russia is reborn with other premises that would fundamentally alter the functioning of its society, now only Russian and no longer Soviet.

Pounding into the Capitalist Machine

For the North American Capitalist Regime, history repeats itself, seemingly victorious from the Cold War, it reaffirms the virtuosity and merits, more than obvious, of its system undertaking, from Reagan’s Administration on, excessively high betting policies; hard pounding over the capitalist machine since then.

Starting 1989, an oil prices hike has been combined with a massive transferring of industrial assets from the United States toward Communist China. And since then, history has really repeated itself. If we take the 1980s as the starting point, Chinese economy grew to, say arbitrarily in 2020, to reach the impressive figure of 18 trillion dollars. Exactly, what the United States had accumulated since 1870 or 150 years; Communist China had just achieved in 40 years of economic development.

In 2008, this accelerated development process, let's say arbitrarily that had begun in 1870 in the United States, reached its peak and began, just as in the case of the Soviet Communist Economy, a scale of deflationary exhaustion of its processes down.

New Paradigms: "In God Wand Trust"

Since the end of the Soviet Regime, Russian society changes paradigms, opting, instead of an accelerated and continuous growth, for another vision that privileges stability. This vision of stability in the new processes of Russian economic development, rescues its history and perceives the value of religion as an integral part of society that goes beyond the rational-legal processes of the laic State.

Thus, " thou shall not kill"; "thou shalt not steal", thou not covet your neighbor's wife" etc., compose moral laws over those writings by the Rational-legal State to inspire a more stable society based on more permanent values and beliefs; combining the moral and the legal.

For this vision of a new social development that focuses on stability, family values turn to be at the center of the social issues; when children are created by father and mother and no longer in day care centers.

Employment becomes part of social promotion to create a shared home where in fact the father and mother live in the same house, which are no longer out there all day long working, leaving their children in a day care center. The house returns to be a permanent inhabited dwelling throughout the day and no longer just a hotel to spend the night.

The present militarization of societies, whether communist or capitalist, is replaced by the rescue of human values that had truly driven us throughout history such as for God and family. Just like in the case of Russia today.

By Professor Ricardo Gomes Rodrigues

São Carlos, SP, Brazil

February 8, 2021