Rediscovering Fire: Basic Economic Lessons from the Soviet Experiment
Book Details
Author(s)Guinevere Liberty Nell
PublisherAlgora Publishing
ISBN / ASIN0875867480
ISBN-139780875867489
CategoryCentral planning
MarketplaceIndia 🇮🇳
Description
Marx promoted the idea that economic laws, although inescapable, were historically contingent. The Soviet Union tested his ideas on the premise that by eliminating private property they could eliminate markets and prices, and new economic laws would govern the new socialist society. However, in managing an economy based on public ownership, they discovered that they could not repeal universal economic laws. By managing the consequences of their policies, the Soviets unintentionally relearned the basics of economics from scratch--essentially, rediscovering fire. In this book, Guinevere Liberty Nell visits this historical laboratory of social science to study the lessons in basic economics that it teaches.
Nell carefully considers Marxist theory and the Soviet experience, and draws out the lessons that Soviet planners learned. Each chapter considers one theory, the experience in the Soviet Union of policies based on this theory, and the reforms that planners implemented when their policies ran up against the unchangeable economic laws they had denied. From this experience, Nell draws out a basic economic lesson.
Each chapter concludes with policy examples and discussion of how the lesson can inform policies that market economies are considering. Most policy examples relate to current U.S. policy debate. The last lesson ties together the thrust of many disparate threads throughout the book. It makes the case that the socialist arguments were aimed at the wrong target, which is why the prescription of planning led to the opposite of what was intended. The conclusion of the book summarizes the lessons, and ties the lessons to questions in economic modeling.
Nell's lessons have relevance for all economies and for both economists and the policy-minded citizen. For example, the socialist elimination of competition provides insight into the neoclassical framework and sheds light on our common understanding of how 'competitive' certain industries are. The book is intended for the educated layperson, but should also be accessible and relevant to college students and professional economists. The book is written in plain language, with all economic terms defined.
Nell carefully considers Marxist theory and the Soviet experience, and draws out the lessons that Soviet planners learned. Each chapter considers one theory, the experience in the Soviet Union of policies based on this theory, and the reforms that planners implemented when their policies ran up against the unchangeable economic laws they had denied. From this experience, Nell draws out a basic economic lesson.
Each chapter concludes with policy examples and discussion of how the lesson can inform policies that market economies are considering. Most policy examples relate to current U.S. policy debate. The last lesson ties together the thrust of many disparate threads throughout the book. It makes the case that the socialist arguments were aimed at the wrong target, which is why the prescription of planning led to the opposite of what was intended. The conclusion of the book summarizes the lessons, and ties the lessons to questions in economic modeling.
Nell's lessons have relevance for all economies and for both economists and the policy-minded citizen. For example, the socialist elimination of competition provides insight into the neoclassical framework and sheds light on our common understanding of how 'competitive' certain industries are. The book is intended for the educated layperson, but should also be accessible and relevant to college students and professional economists. The book is written in plain language, with all economic terms defined.
