Continued…
- A somewhat lower economic growth might be justified if it had other compensatory benefits. I think the communist states (or the best of them, at least: I’m not going at all to step to the defence of Mao in China, who was just a disaster) did have such benefits. Lower inequality for one, and (for another) better job prospects for low-education workers, i.e. the kind of people that the modern United States (and some modern western European countries) are leaving behind. I think Keith Gessen puts it really well here:
“Industrial work was championed by the Soviets, both in word and in deed: coal miners in Donbass earned on average two or three times what a software engineer like my father earned in Moscow. (In the early 1980s, Bik had been working as a miner for just a few months when he bought a motorbike. The girls went crazy for it.) When the Soviet Union ended, the entire country experienced what Nietzsche might have recognised as a transvaluation of all values: what had been good was now bad, and what had been bad was now good…”
- The claim that markets thus far have outperformed central planning in terms of economic growth is strong enough to be true on the whole (in my opinion) but it’s also a lot weaker than many people to think. To summarize the problems with the claim as a whole: it’s true mostly of Europe and Asia (definitely not true of Africa or of Latin America), it’s arguably not true of the richest communist country, East Germany (if Gerhard Heske’s estimates are right, and I’m not an economist or a historian but he seems to be fairly well cited, then the GDR had a slightly higher economic growth rate than West Germany during its overall history as well as during the last decade of its existence), it’s greatly weakened when you look at median rather than average income (the Soviet Union during the worst of the stagnation era, 1975-1985, had higher median income growth than the US), and it’s also greatly weakened when you consider the stagnation for working class people that the United States and other western countries have entered since the 1980s. (Median income in the US since 1975 has grown at 0.55% per year, which again is lower than in the Soviet Union on the eve of Gorbachev’s appointment to power).