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The Soviet Union created an economy that defied every law of supply and demand. For 70 years, they tried to prove central planning could work. This is why it spectacularly failed.

The Soviet Union created an economy that defied every law of supply and demand. For 70 years, they tried to prove central planning could work. This is why it spectacularly failed.

While Western economies collapsed during the Great Depression, the Soviet Union thrived. By 1932, they had zero unemployment and 50% industrial growth. Some Western economists called it superior to capitalism. But beneath the surface was a system so broken, so contradictory, that its collapse was inevitable.

In This Video: → Why the Soviet economy boomed during the Great Depression → How Five-Year Plans attempted to control every aspect of production → The incentive problem: Why factory managers sabotaged their own success → The information problem: Why central planning is mathematically impossible → How 12 million died in the pursuit of rapid industrialization → Why the USSR could launch satellites but couldn't produce decent jeans → The final collapse and what it teaches us today.

The Soviet economic system wasn't just different—it violated fundamental truths about how markets, incentives, and information work. This is the complete story of history's most ambitious economic experiment and its inevitable failure.

SOURCES & FURTHER READING:

"Why Nations Fail" by Acemoglu & Robinson
"The Road to Serfdom" by Friedrich Hayek
"Economic Calculation in the Socialist Commonwealth" by Ludwig von Mises
"The Soviet Economy: A New Approach" by Bergson & Levine
Soviet Archive documents on Five-Year Plans
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#SovietUnion #Economics #History #ColdWar #Communism #Documentary #FinancialHistory #EconomicHistory #Stalin #USSR