Who Defeated The Soviet Union - Road to the Middle Class

IN HINDSIGHT, everyone knew that the Soviet Union was bound to collapse. Conservatives knew that it was the firmness of Ronald Reagan. Liberals suddenly discovered that the Soviet Union was bound to collapse anyway—although they had cleverly avoided telling anyone before 1991.

But Yegor Gaidar in his book, The Collapse of an Empire: Lessons for Modern Russia, has a different take. It all started when the Bolsheviks were deciding how to develop the Soviet Union in 1928-29. Should they allow peasant argiculture and the market system while still hanging onto political power? Or should they choose another way?

The solution preferred by Joseph Stalin was the expropriation of peasants� property, forced collectivization, and extraction of grain. Judging from the available documents, the essence of this decision was relatively simple. Bukharin and Rykov essentially told Stalin: "In a peasant country, it is impossible to extract grain by force. There will be civil war." Stalin answered, "I will do it nonetheless."

The problem was that the forced expropriation of grain to feed the industrialization of the cities (the strategy also used by Mao) resulted in widespread famine in the countryside.

That might be fine, temporarily, while the industrial sector got up to speed, but unfortunately, it never did. The industrial output of the Soviet Union never came up to world-class standards. As Nikolai Ryzhkov, chairman of the USSR Council of Ministers, put it

"No one will take our machinery production. That is why we are exporting mainly raw materials."

And nobody has ever argued that the Soviets had a clue when it came to consumer products.

Fortunately, the Soviets got a lucky break in the 1970s. The oil price explosion and oil discoveries in western Siberia enabled them to pay for grain imports by exporting oil. Then came the fateful day in 1985.

The timeline of the collapse of the Soviet Union can be traced to September 13, 1985. On this date, Sheikh Ahmed Zaki Yamani, the minister of oil of Saudi Arabia, declared that the monarchy had decided to alter its oil policy radically. The Saudis stopped protecting oil prices, and Saudi Arabia quickly regained its share in the world market. During the next six months, oil production in Saudi Arabia increased fourfold, while oil prices collapsed by approximately the same amount in real terms.

It cost the Soviet Union $20 billion a year that it needed by buy grain from abroad. For a few years the Soviets were able to stay afloat by borrowing money from the West. Then came the crunch. The banks refused to continue lending.

Anatoly Cherniayev described the situation in Moscow in March 1991:

If [the grain] cannot be obtained somewhere, famine may come by June. . . . Moscow has probably never seen anything like that throughout its history—even in its hungriest years.

And that was the end of the Soviet Union.

So maybe now we can understand why the United States has had such a chummy relationship with the Saudis. They threw the switch that ended the Soviet Union.

Now if only they would throw the switch on their Wahabi mosques and their poisonous imams.

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Christopher Chantrill blogs at www.roadtothemiddleclass.com. His Road to the Middle Class is forthcoming.

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Faith & Purpose

“When we began first to preach these things, the people appeared as awakened from the sleep of ages—they seemed to see for the first time that they were responsible beings...”
Finke, Stark, The Churching of America, 1776-1990

Mutual Aid

In 1911... at least nine million of the 12 million covered by national insurance were already members of voluntary sick pay schemes. A similar proportion were also eligible for medical care.
Green, Reinventing Civil Society

Education

“We have met with families in which for weeks together, not an article of sustenance but potatoes had been used; yet for every child the hard-earned sum was provided to send them to school.”
E. G. West, Education and the State

Living Under Law

Law being too tenuous to rely upon in [Ulster and the Scottish borderlands], people developed patterns of settling differences by personal fighting and family feuds.
Thomas Sowell, Conquests and Cultures

German Philosophy

The primary thing to keep in mind about German and Russian thought since 1800 is that it takes for granted that the Cartesian, Lockean or Humean scientific and philosophical conception of man and nature... has been shown by indisputable evidence to be inadequate.
F.S.C. Northrop, The Meeting of East and West

Knowledge

Inquiry does not start unless there is a problem... It is the problem and its characteristics revealed by analysis which guides one first to the relevant facts and then, once the relevant facts are known, to the relevant hypotheses.
F.S.C. Northrop, The Logic of the Sciences and the Humanities

Chappies

“But I saw a man yesterday who knows a fellow who had it from a chappie that said that Urquhart had been dipping himself a bit recklessly off the deep end.” —Freddy Arbuthnot
Dorothy L. Sayers, Strong Poison

Democratic Capitalism

I mean three systems in one: a predominantly market economy; a polity respectful of the rights of the individual to life, liberty, and the pursuit of happiness; and a system of cultural institutions moved by ideals of liberty and justice for all. In short, three dynamic and converging systems functioning as one: a democratic polity, an economy based on markets and incentives, and a moral-cultural system which is plural and, in the largest sense, liberal.
Michael Novak, The Spirit of Democratic Capitalism

Action

The incentive that impels a man to act is always some uneasiness... But to make a man act [he must have] the expectation that purposeful behavior has the power to remove or at least to alleviate the felt uneasiness.
Ludwig von Mises, Human Action

Churches

[In the] higher Christian churches� they saunter through the liturgy like Mohawks along a string of scaffolding who have long since forgotten their danger. If God were to blast such a service to bits, the congregation would be, I believe, genuinely shocked. But in the low churches you expect it every minute.
Annie Dillard, Holy the Firm

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“When we received Christ,” Phil added, “all of a sudden we now had a rule book to go by, and when we had problems the preacher was right there to give us the answers.”
James M. Ault, Jr., Spirit and Flesh

Living Law

The recognition and integration of extralegal property rights [in the Homestead Act] was a key element in the United States becoming the most important market economy and producer of capital in the world.
Hernando de Soto, The Mystery of Capital

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