> human-societies > soviet-style-economics-is-insane-and-here-s-why-casual-scholar

Soviet Style Economics is Insane and Here's Why.

Casual Scholar - 2021-10-28

The Soviet Union's Economy was once the envy of the world, But as rapidly as it arose the Soviet Union collapsed as a result of its crumbling Economy. but why? 

While the rest of the world struggled during the great depression, The Soviet Union was quickly and rapidly industrializing under Stalin's command, but locked within the foundations of the country lie an unavoidable time bomb. In this video we travel all the way back to the 14th century to understand the fundamental forces and conditions that caused Communism to arise in Russia in the first place. Then we follow the economic story and evolution from the Russian empire to the fall of the Soviet Union.

--Contents of this video--------------------------------
00:00 - 1920's Global Economic Boom
00:50 - Great Depression
01:19 - The Soviet Economy Stands Alone
02:45 - The Roots of Economic Divergence
04:09 - The Black Death
06:40 - East Vs West European Economic History
07:55 - Industrial Revolution in the West
08:47 - The Russian Empire's Economy
11:55 - The Soviet Economy's Beginnings
13:42 - Soviet Industrialization - Stalin's 5 year plans
16:22 - Problems with Soviet Economy
21:00 - Cause of Soviet Union's Collapse
25:11 - Thanks for Watching!

Support the Channel! https://www.patreon.com/CasualScholar

--A Thank you to Viewers!--------------------------------
I really appreciate all those who watch my content, Thank you for being as interested in these topics as I am!

As this is the channels first video, Any and all feedback would be greatly appreciated :)

please Like and Subscribe to follow up for more Economics, History, and Geopolitical videos coming soon!

--Sources-----------------------------------------------------
(Books)

-The Rise and Fall of the The Soviet Economy: An Economic History of the USSR from 1945

-Why Nations Fail: The Origins of Power, Prosperity, and Poverty

(Scholarly Articles) 

-Economics in the Former Soviet Union -The Journal of Economic Perspectives
Vol. 6, No. 2 

-Soviet Economic Growth: 1928-1985 - Journal of Economic Literature
Vol. 25, No. 4

-The Soviet Economy, 1917–1991: Its Life and Afterlife - Vol. 22, No. 2





#EconomyExplained #Economics #SovietEconomy

Dynosaur - 2021-12-03

I thought you would have like 2 million subscribers until I looked at the number and realised you only had around 120. I hope you get more subscribes because you have very good content.

adamwnt - 2022-08-28

@Laurens van den Berg yeah sure

Laurens van den Berg - 2022-08-28

@adamwnt "yeah sure"
Plain dismissal? Not even looking into it? Seems like you just had preexisting ideas about communism you wanted to confirm. Prolly some American nationalist weirdo.

adamwnt - 2022-08-28

@Laurens van den Berg coincidently i grew up in an ex communist country so your assamptions are definitely correct

Laurens van den Berg - 2022-08-28

@adamwnt my assumption that the USSR launched Sputnik? My assumption that such a system of quotas exists in capitalist countries? My assumption that most inventions come about entirely or partially because of the public sector?

Those are not assumptions. Those are facts. And an ex communist nation does not reflect communism well. After the union was dissolved, the former socialist nations saw a massive decrease in quality of life. Except for the oligarchs who seized power, of course.

carkawala khatulistiwa - 2022-09-30

@Casual Scholar no civil war between the bolsheviks and the provisional government

M A - 2022-04-05

I think in videos like these it is very important to emphasize that rulers who tried to reform the feudal system were often assassinated.

People who live in comfortable modern-day societies and judge people of the past have no clue how difficult it was to change even the most obvious societal injustices.

For most of history, a reformist ruler was literally putting his life on the line

Sam Botros - 2022-09-14

@PotatoNoodleBear https://youtu.be/fqRt-YIjlOU

Sam Botros - 2022-09-14

@Real Brethem https://youtu.be/fqRt-YIjlOU

Shikoku - 2022-09-14

Lenin died worth over 80 billion dollars in today's money, you know, like a good socialist

Nostalgic memories - 2022-09-30

https://www.youtube.com/watch?v=Hcl3R-yARX8

I am Normal - 2022-10-21

"People who live in comfortable modern-day societies and judge people of the past have no clue how difficult it was to change even the most obvious societal injustices."

Yes we do have the idea. For, even today, it's very difficult to change a country's political system. Once a nation of people is settled in its ways, that's how it's going to drive.

Jakub Kovar - 2022-07-13

Also interesting is how people in USSR used to steal from their employers. We used to have saying in Slovakia “Who is not stealing is stealing from his family”. My grandpa built a whole tractor from parts he got this way lol

Kim O'Brien - 2022-09-19

@Smith & Ministry Its the natural result of using capitalist methods in the effort to build socialism. Although they made mistakes in Cuba they never had he injustice of forced collectivization and the murderous purges of Stalinist Russia because if they did they would have been able ti survive just 90 miles off the US Coast of Florida.

Smith & Ministry - 2022-09-19

@Kim O'Brien tell that to my great uncle who was executed for attempting to grow a copy of Stalin's beard. Go be stupid with your lesbian dance theory degree someplace else

Selim Arditi - 2022-09-23

@TheHiHiPop LoL

Alexander Conorto - 2022-09-25

@Kim O'Brien Yes the workers paradise ! Only that all those stupid workers prefer to leave the paradise just to go to the hell of capitalism like USA. I suppose that you yourself had left your hellish country years ago for Cuba. That's why you're an expert on this matters

Nostalgic memories - 2022-09-30

https://www.youtube.com/watch?v=Hcl3R-yARX8

Kilgore Trout - 2022-10-03

I was about to do a lazy video about the Soviet economy without actually doing any research and using rehashed US propaganda talking points from back in the 60s, but Casual Scholar beat me to it.
Now I now even less after watching it.Good job.

S Starklite - 2022-10-19

I began this wondering how you would handle it and, like I expected, you failed.
It failed mostly because USA forced them to fail in so many ways, but also many other reasons forced them to fail!
1) The +200 years leading up to 1917 had a huge reason that eventually caused it to fail, their insane system of oligarchs made their existence have so much difficulty to overcome made it extremely difficult to succeed, unless you think “everyone was on board with Socialism and Communism” which they weren’t, they had that to fight all the time! The previous +200 years didn’t just disappear, having no effect!
2) They had a lot of catching up to do from the previous +200 years which didn’t happen easily! +200 years!
3) They had very poor communication and transportation: no cars or trains or phones! That’s huge! It can’t be overlooked and brushed aside easily like you all do!
4) Even America didn’t know the best way to farm and produce food, AND still doesn’t! We should farm vertically, using less land! A bunch of small farms is ridiculously backwards! And big corporations operations are also wrong!
5) And maybe this should be FIRST: USA wouldn’t do business with them hoping to force them to fail! And that worked as planned! Imagine if USSR could have bought anything they needed from USA! What a difference it would have made for them, but no!
6) Many nations have been trying to be COMMUNIST but USA said NO and started many wars, teaching torture, assassinations and lots more, killing millions of people worldwide! See ROGUE STATE by Wm Blum and many others at Third World Traveler! (I repeat: many nations wanted communism! Why? Because they could SEE how much poverty was caused by USA capitalism!)
6) They started out very poor, that had a huge impact!
7) Across USSR they’ve ALWAYS had bad crops and FAMINES every 5-10 years! EVERY 5-10 YEARS,
8) They had a Civil War and 2 World Wars! Can you imagine how hard that made life???
Wars destroy land, and kill workers and farmers, and how difficult it must have been to just get people back to farming, probably the old fashioned way because everything had been destroyed! Especially after WW ONE before perfect communication and transportation, they were still way behind!
9) Just the simple fact that it had never been tried before, and knowledge was lacking by everyone, even in America!

And I’ll bet there were many other reasons but that’s enough for now!
Now if USA had been trying Communism at the same time, we would have succeeded, AND THEY would have succeeded! And today there would be NO POVERTY on Earth! Because Communism is and soon will be God’s PERFECT WAY! To help destroy capitalism DO NOT BUY ANYTHING from corporations! They’re brainwashing people with ADVERTISEMENTS to BUY more junk, to give ALL PROFITS to the few RICHEST people, while letting BILLIONS STARVE TO DEATH WORLDWIDE!
DO NOT BUY ANYTHING😂 EXCEPT BARE NECESSITIES TO HELP END WORLD POVERTY!!!!!!!
WE must destroy USA capitalism ASAP! Get it???!!!!

You should try making this one again, Casual Scholar!

Teutonicterror 03 - 2022-10-01

12:23 First of all, a "broad coalition of working and lower class" couldn´t exist in russia, because there was only a tiny working class and because most people still lived as illiterate farmers, who didn´t care about politics, because they didn´t had the capabilities to even understand it. So no russian party had the support of such a coalition, because it couldn´t exist. Secondly, the socialist party had a lot of support among the small industrial proletariat of the bigger cities. Thirdly, again, in the west, there was also just a tiny minority, that ruled the nations, there wasn´t a "built in mechanism" to prevent totalitarianism either, it occured quite frequently as well. And again, the bourgeoisie "democracies" of the 19th century weren´t really democratic and oppressed the working class. There were of course attempts by "broad coalitions of working and lower class" (aka socialists) to change this as much as possible and create real democracy, and this eventually lead to some reforms, but it is stupid to claim, that western industrial capitalism had some built in anti-autocracy mechanism and russia didn´t.
12:41 No, not at all the same as the one they had destroyed, not at all. A political party consisting of many members who didn´t get there by birthright, didn´t own large swaths of land or viewed the nation itself as their personal property and actually had at least some degree of democratic processes, is completely different from an absolutist monarchy.
12:48 Whaaat? A political party, that represents only one political ideology and doesn´t let followers of other ideologies join? Whaaat? Mh, sounds familiar, where have I heard this before? Oh yes, fucking everywhere, because that´s how political parties work. The Democrats and the GOP aren´t allowing communists to join their ranks either (and at least the Dems don´t allow Nazis to join them), because parties are an organisation, in which people of the same political believe organise themselves.
12:52 "Socialist Utopia" is a completely nonsensical term, Marx and Engels wrote multiple books, in which they explained, why past ideas of socialism were indeed utopian, but the modern industrial socialism isn´t.
13:00 Again, hugely oversimplified explanation of war communism, to a degree that it´s almost wrong.
13:20, well not war communism had decreased agricultural output, but instead war did, but ok.
13:58 again, huge oversimplification. The soviet economic system was very complex and complicated, way to complex to just describe it with "all was commanded from above", that´s just not true. Regional and local planning plaid a great role in economic planning and it was more a system of different stages of economic planning heavily intertwined with each other creating detailed plans based on huge amounts of collected data, not just "commanded from above".
14:12 Ok, better, still pretty oversimplified. And "Minor" negotiations, what kind of framing is that?
15:38 Not all farmers were forced, many joined the Kolkhozes voluntarily, yes, some others had to be forced, mostly the comparably rich owners of bigger parts of land. Not the ideal way to deal with it, I´ll admit that, but still, collectivisation was at some point neccessary and it was better for the USSR in the long run. And it didn´t lead to the death of 12 million people, where´d you got that number from? Usually, the Holodomor is seen as a result of the collectivisation efforts, but it had a bunch of other reasons (Kulaks burning crops instead of handing them over to the communities, the idiotic principle of Lyssenkoism, natural disasters, etc.) and the death toll of Holodomor is usually estimated to be between 3 and 7 million people, not 12. Such idiotic numbers are given by guys like Robert Conquest, who can´t really be taken seriously, he completely ignored modern sources and still claims, his estimates from 50 years ago, which are often purely based on the statements of russian dissidents, are the true numbers.
16:04 That´s just wrong. Farmers did get a bonus, when they exceeded the production goals in the plan and to some extent, trade of excessive goods was still allowed or at least tolerated even under Stalin.
16:23 Oh come on, that´s literally propagandistic nonsense. No, you don´t have the freedom to work anywhere you want, theoretically you have, yes, but in practice you are limited by geographical, financial, and a bunch of other factors. If you´re for example born in a dying coal miner city, or as a part of the POC-community of Detroit, you´ll have it pretty hard to find a job anyways, and even if you do, it´s gonna be a low-wage one, so it´s pretty unlikely that either you or your family will ever have enough money, to move somewhere else, where better jobs are. Besides, changing your job in such a situation would be pretty risky, if you live paycheck by paycheck, three months without job could literally mean death for you. And what about african or south american nations for example, don´t make the foolish mistake to talk only about the anglo-american world, when talking about capitalism (I mean, it´s already to late, even your history lessen was very anglocentric), capitalism exists outside of america as well, and hundreds millions of people have absolutely no choice when it comes to their jobs, because there are no fucking jobs where they live. If one has to send his child to work on Cocoa plantations instead of school, in order to have enough food today, how will this kid ever have the freedom to choose, where to work? And "anywhere else that will hire you", well, that´s also kind of a problem, if economy isn´t rolling, nobody will hire anyone. Nah, "Freedom to chose your job" is absolutely limited under capitalism, it exists for the wealthier part of society, but for most people in the world it has never existed. Besides, you can choose what profession to pursue under socialism as well, it´s not like the government will force 8th graders to become steel workers, if they need to. Under capitalism, markets, which in most cases means your local monopolists, decide what jobs are needed and will hire accordingly, under socialism the economic plan does this. If there are no steel workers needed in Detroit, then nobody will offer to train new steel workers and people in Detroit will not become steel workers, but learn something different instead, and if there is no need for steel workers in Havanna, the economic planning committee and regional production managers will not offer to train new steel workers in Havanna, what´s the big difference there?
16:28 If you "work smarter and harder" your boss will just take the surplus value and secretly laugh at you for being such an obedient fool. Fucking hell, this guy can´t have worked a day in his life, if he really believes, that working harder will get you promotions and increased wages. No, the only thing, that has historically ever lead to higher real wages, was workers organising and demanding them, threatening the bourgeoisie with strikes and violence, if their demands are not met. That´s what helps. Not "working harder" for a boss who will hapily take every bit of free labour he can get. Fucking naive.
16:43 There were bonuses for exceeding the plan. But he´s right, those bonuses weren´t that usefull, since money was never really a problem in the USSR. This is a problem of the USSR specifically though, because it focused so extremly on heavy industry and military. Could be changed in future socialist societies, especially, if they would start at a higher level of industrialisation as the USSR and not have to spend as much for a cold war against a way mightier and older nation

Sacralny Nomad - 2022-04-16

If you want to really understand how crazy Soviet economy was, consider this. My grandfather used to be an engineer at a factory and they had two assembly lines that all they did was when there was no work to be done one line would assemble a tractor frame and then the other line would disassemble it. And they'd just keep cycling through 3 frames worth of parts over and over untill more work came in and those workers became needed for an actual work. Or how every buhgalteria (financing department? Don't know how to call it in English) would have 10-20 people working there when all it needs was ~5 people so everyone would just do actual work for an hour or two and spend the rest of the day drinking tea and gossiping about love life of people from other departments.

Andy Lei - 2022-10-02

@Hmmm Hmmm That totally makes sense. 20-40 million people starved to death (btw that’s 1/4-1/2 of total ww2 death), countless relics and cultural artifacts destroyed, hundreds and thousands of intellectuals murdered and butchered. But hey, we got 铁饭碗 in return, isn’t it a good trade? Fucking genius

Valiantcat7780 - 2022-10-03

At least they aren’t in a ditch, and left behind by society. Kinda like those in need here in the U.S

Andy Lei - 2022-10-03

@Valiantcat7780 20-40 million people died from starvation, which happened because the CCP’s Great Leap Forward movement. What a ditch that is, I’d rather get left behind than end up in that ditch. Not to mention hundreds of thousands of intellectuals murdered, millions of them oppressed during the Cultural revolution. Jesus Christ, what nonsense you’re willing to spew just to attempt to shame the US, what a genius

Andy Lei - 2022-10-03

@Valiantcat7780 My grandma almost starved to death, my great grand father did starve to death. My childhood friend’s father disappeared after he said something, I’m just fascinated that you are willing to live in that “ditch”.

Andy Lei - 2022-10-03

@Valiantcat7780 just to help you comprehend that number. WW2, 4 theaters, the whole world in flames, had a death toll of around 80 million. The CCP killed 20-40 million in one political movement. That that’s not the only movement they had. What a ditch

Михаил Мёдин - 2022-07-05

I'd argue that the video is mostly on point, even though a lot of factors were left out for the sake of short video format. However, the ending kind of really lacks the much needed details, since gorbachev wasn't necessarily the first to try and didn't really have the goal in mind of instilling societal "freedoms" in SU. Good video nonetheless.

Mirth Magic - 2022-07-25

If to start showing the other point then it's all about a colonialism - the major source of so called freedom and success of the capitalism.

Kim O'Brien - 2022-09-19

@Mirth Magic Gorbachev and company were following in the footsteps of Stalin and class collaboration with the Democratic Imperialists. Now the bitter fruit is being harvested by the Russian people in Putin's war on Ukraine. Ukraine's struggle for national independence is like all struggles of oppressed nations a progressive one despite the reactionary role of the US and NATO Imperialists. When Lenin was alive the Soviet Union was a voluntary federation of Socialist republics not a prison house of nations. Stalin reversed all that. It was Stalin who was responsible for the death of Lenin's party. Stalin who began the march back to the misery of capitalism.

Mirth Magic - 2022-09-19

@Kim O'Brien Soviet Union changed its economic structure several times during its 70 years of history.
To be national independent Ukraine had to NOT sign the European Union–Ukraine Association Agreement, besides typical bla-bla for all the good against all the bad, the most interesting part there is about the economy and relationship.
If this is not enough, then Biden demanded to fire the Prosecutor General of Ukraine in exchange for a loan and Poroshenko did. These are few examples in the long list of being so called an “independent” country.

Ehfoiwehfow Jedioheoih - 2022-09-21

@Mirth Magic soviets colonized Siberia and Kazakhstan. They used the same strategy to genocide the Kazakhs that the western American settlers used. Kill their food supply that they migrated with. Please educate yourself and stop simping for authoritarians.

Mirth Magic - 2022-09-21

@Ehfoiwehfow Jedioheoih I studied Russian and Soviet history for about 7 years. Btw, I understand spoken Kazakh language and can read it. I was in Siberia. What else you’d like to teach me?

Steampunk Terminator - 2022-05-24

actually when talking about built to last here in America we did the exact same thing with cars up until some point in the 90s where all cars from all brands were build far more solid with literally everything made with steel (except the seats obviously) so u can say older cars were the civilian equivalent of a tank as skidding sideways into a tree would barely damage an older car as opposed to moders cars which wrap all the way around a tree or telephone pole they hit. believe me I've seen modern cars wrapped around a tree hell even split in two in some cases

Teutonicterror 03 - 2022-10-01

16:57 A few things here: First of all, prices and output where somewhat correlated, it´s not like the economic planners just ignored the latter and decided, that bread should cost 50 ct a pound because they felt like it that day. Look, an economic plan can, unlike markets, also take political goals into consideration. That means, where a market would lead to a huge number of empty flats, because it is more profitable to leave them empty until someone is willing to pay extraordinarly high wages, a plan could take the political goal of giving everyone an affordable flat into consideration. That doesn´t mean, that the plan and thus the prices are completely ignoring actual output, that´s stupid, but a government can do certain things, to keep stuff, especially necessities like food and housing, affordable for everyone even though a market would say otherwise. Flats in the GDR for example were extremely cheap, despite the fact, that there was a constant shortage of them. The government solved this problem, by providing flats to those first, who needed them the most. This meant, that in the worst case, one had to wait a few months or even two or three years, until they got a flat, but everyone had one, homelessnes didn´t exist, and rent was so incredibly cheap, a nice sunday in a restaurant was more expensive than your monthly rent. Now, again, the eastern block nations focused heavily on heavy industry and eastern europe was always less developed than the west, which meant, that they didn´t had the capacities to provide enough consumer goods, but that´s a problem specific to them, in a future socialist society, with enough industrial capacities to build enough houses and produce enough cars, they could be extremely cheap, like in the east, but also produced in sufficient numbers. The problem of a socialist economy isn´t that planners don´t determine prices exactly like a market would do, the whole idea behind a planned society is, that they shouldn´t do that, the problem (at least in the case of the USSR) was, that planners never had much to plan with, that the political landscape in the USSR sometimes prohibited a better way to plan, and that everything, especially in the beginning, was highly experimental. Nobdy had ever done a planned economy before, the soviet economists were basically like the first european discoverers, they didn´t really had a clue what they were doing because they were the first to do it, and thus they had to experimented a lot. By the 50s, they had more or less created a functioning system, but the lethargy of the political system, especially in the 70s, prevented the neccesary reforms from happening. But all of this doesn´t mean, that a planned economy automatically fails, because prices aren´t determined by markets anymore, that´s absolutely stupid.
Besides, what about things like Uber? They lose money year after year, but as long as their investors invest more, they can keep prices on an extremely low level, lower than "what the market would determine". What about Amazon, they´re basically a monopoly, if they change the wages of their workers, that affects prices around the world greatly. The prices on the market are not determined by some mystical guiding hand that keeps everything in balance either, they´re determined by economical actors. So yeah, agan "perfectly balanced market prices, that lead to economic stability vs. unrealistic planned prices, that are disconnected from reality", that´s a stupid myth that can be debunked within 5 minutes.
17:35 The reasons, that per person productivity were lower, has much more to do with the technical advantage of the west, if a worker operates a more modern machine, his per person producitvity will of course be higher. I already explained, why there are no incentives to work harder in a capitalist society (except if you´re really naive). Same might have been true for the USSR, but still, it´s again a stupid myth, that the west won the cold war, because there was more incentive to work harder. There wasn´t. I mean, studies have shown, that the average office worker in the US spends a little over 8h in office, but works only 6 of those ours. But yeah, of course the US won the cold war, because of the incentives for the average worker, to work as hard as possible, incentives like... the naive hope to get a raise if you work yourself to death? Fucking hell, how can this guy not see, how stupid all of this is?
19:41 What the fuck do you mean by "to much workers"? There isn´t such a thing as "to much workers", if there is no profit motive. Bruh, you´re thinking in capitalist terms while talking about a socialist economy. As long as you can pay those workers (and in a socialist economy, you can always do that) they will be hired. If there are more workers in a factory than are needed to produce the desired output, cool, that´s less work for the individual worker. Again, such a thing as "to much workers" doesn´t exist under socialism, you can only have to much workers, if you´re trying to make a profit, which you don´t do under socialism, all you´re trying to do under socialism, is balance out the plans.
20:10 Again, this had a lot to do with technology, and little with what you´re talking about. Better technology means less workers required for the same output. And the US had better technology. Besides, as I already mentioned, more workers ideally meant less work for the individual. Let´s say the goal was to produce 1000 pairs of shoes, the factory had exactly enough leather, and it would theoretically need 10 workers working 8 hours to do that, but it had 16 workers instead. In a capitalist economy, this would be inefficient, in a socialist economy, this would mean less work for the individual worker. Paying them was never a problem and a profit motive didn´t exist. You really are talking about a socialist economy, like a die-hard capitalist would.
20:30 You do know, that enterprise managers could be fired, right? If an enterprise manager got new Equipment, and output still stayed the same for the next few years, this could´ve aroused some suspicion, don´t you think? And "arousing suspicion" was usually not something people wanted to do in the USSR.
21:22 Yes, but that´s hugely oversimplified again. The main reason for the lack of innovation wasn´t the planned economy itself, but a bunch of other factors: The soviet union was behind on technological advancement from the beginning (as Stalin said, they were behind 50 or 100 years in 1931), and only managed to catch up in a few areas the political leaders deemed important (which often were propagandistically usefull, but didn´t had much use for economic development), the inability to reform in the 70s also had to a large extent political and not economic reasons. During that time, a bunch of very old and incompetent dudes ruled the USSR, who were neither interested in, nor able to succesfully reforming the economy, instead they relied on the high oil prices keeping the economy afloat. Main problem here wasn´t a system of inefficient planning, but rather a static and oppressive political system. Something that, again, could be done differently in the future. Having more democratic structures and holding leaders accountable to the people could certainly improve things a lot.
21:28 Again, propagandistic nonsense, even if you create some great invention, you have to have money, in order to make money. None of these "self-made millionairs" are selfmade. Property rights are only good for those, who have a lot of property.

Ok, so to conclude, this video is a bunch of half-knowledge, mixed with some capitalist propaganda and a few false causal relations that never existed. I didn´t expect much, since this is just another of those clickbait-hobby-political-stuff-channels, and they are never good, they´re for 8th graders and dumb people who want to feel smart without actually having to do any research. But this was worse than I expected

litneyloxan - 2022-09-08

The amount of “Great Depressions” we’ve been through at this point and more and more of us younger people can’t find meaningful work or affordable housing and likely never will with the economic problems older generations dump on us.

Kim O'Brien - 2022-09-19

Time too rebuild the trade union and fight back with the strike and work stoppage to make workers control a reality. Create a new independent labor party to fight the bosses in government.

Daniel - 2022-03-25

The analysis of the feudal system and how that indirectly led to such a long time of no technological developments was so well explained. You gained a subscriber just for that!

Cody Mapping - 2022-07-21

@Ramsay lmao do you really think Europe is suffering?
Germany, Britain, Ireland, Norway.
Yeah they definitely suffer while only US thrives lmao.

Fernando Silva - 2022-07-25

The power of kings in feudalism was nothing. The king was more a roaming judge than a central power.

Jetman 33 - 2022-09-01

@Spacemongerr You left out FREEDOM and Magna Carta from England but lived in America.

Nostalgic memories - 2022-09-30

https://www.youtube.com/watch?v=Hcl3R-yARX8

AVoiceOfOpinion93 - 2022-10-25

@Spacemongerr I don't think he was as harsh on Communism as he could had been, surprisingly enough. When he noted its ultimate failure in Russia he framed it as less fundamental flaws in the ideology and more as a result of circumstances. He was more critical of non-democratic, exclusive elites based political systems which enabled the formation of extractive economic systems than anything, capitalist or not.

The Moment of Truth - 2022-09-07

16:40 this is a myth, I worked jobs 12-16 shifts, and when my health collapsed my employer just replaced me with another worker and the business would keep doing that with all of us while paying minimum wage for years. That was in New Zealand. Capitalism is no different than Soviet Socialism in exploitation of the workers. What matters is the gain of whichever entity works the workers.

Philly Batts 1987 - 2022-09-13

Weak.I worked 20 hour shifts 7 days a week in a foundry for minimum wage and waived all benefits while homeless all voluntarily.

Chris Math - 2022-09-19

Well, medieval peasants paying heavy taxes might be a bit of an overstatement. While the tax might have been locally infalted (peasants have succesfully brought their liege to court a few times over this issue), it was not as terrible as paying the majority of what produced. For the majority of peasants that would have meant giving up what seeds they needed to plant crops next year. Of course the life was harsh (particularly for modern people) and unfair but it was no way as brutal as it is commonly believed to be. Peasants were the backbone of feudalism - without them, there would be no food.
The peasants were also given protection by the Lord. Another example of peaseants going to court against their lieges and winning. Feudalism centered around both duty and obligation. And yes, there were still exceptions where it did not work as well, and many peasants certainly weren't happy with that arrangement.
Also, lives of peasants did improve. Since noble landowners lost prominence, since epidemids lead to shortage of labourers (uh...good luck, I guess, if you survived) and since technological and material progress made farming more effective.

sえbえlbうb - 2022-07-11

I think you're wrong on Tsars during the 18th-19th century. There were some real western-philes that tried to modernize Russia during that time. It was the old nobility that tried to curtail this process. For example they tried several attempts on Peter I 's life over his reform mentality

Yulia Ko - 2022-07-12

Peter I was in the very beginning of the 18th century. But yeah Alexander I was more liberal, especially in the begging of his reign

Jose Jaquez - 2022-10-01

"people could now profit from discovering new inventions or processes without fear of someone stealing their ideas".......wtf .... Have you ever read even 1, just 1, any history book at all?

redmanticore - 2022-07-03

fun fact: those 2 capitalist societies that had access to the Soviet economy faired well. India and Finland did. well, India was more communist, and bureaucratic than Finland, so their GDP didn't grow that much. finland had quite the surge in GDP through the soviet years. That's why Finnish boomers remember old soviet as good times, but now new Russia is clearly bad in comparison to the old. our economy was like 90% of from soviet, now maybe 6% with the new Russia? they really didn't want to continue the old ways.




"Finland became part of the Western European trade-liberalization movement by joining the World Bank, the International Monetary Fund (IMF), and the Bretton Woods agreement in 1948, becoming a member of the General Agreement on Tariffs and Trade (GATT) two years later, and joining Finnefta (an agreement between the European Free Trade Area (EFTA) and Finland) in 1961. The government chose not to receive Marshall Aid because of the world political situation. Bilateral trade agreements with the Soviet Union started in 1947 and continued until 1991. Tariffs were eased and imports from market economies were liberated from 1957. Exports and imports, which had stayed at internationally high levels during the interwar years, only slowly returned to the earlier relative levels.

The investment rate climbed to new levels soon after world war II under a government policy favoring investments and it remained at this very high level until the end of the 1980s.

GDP growth was 4.9 percent and GDP per capita 4.3 percent from 1950–1973 – matching the rapid pace of many other European countries.


The oil crises of the 1970s put the Finnish economy under pressure. Although the oil reserves of the main supplier, the Soviet Union, showed no signs of running out, the price increased in line with world market prices. This was a source of devastating inflation in Finland. On the other hand, it was possible to increase exports under the terms of the bilateral trade agreement with the Soviet Union. This boosted export demand and helped Finland to avoid the high and sustained unemployment that plagued Western Europe.

Economic growth in the 1980s was somewhat better than in most Western economies, and at the end of the 1980s Finland caught up with the sluggishly-growing Swedish GDP per capita for the first time. In the early 1990s, the collapse of the Soviet trade, the Western European recession, and problems in adjusting to the new liberal order of international capital movement led the Finnish economy into a depression that was worse than that of the 1930s. GDP fell by over 10 percent in three years, and unemployment rose to 18 percent. The banking crisis triggered a profound structural change in the Finnish financial sector. The economy revived again to a brisk growth rate of 3.6 percent in 1994-2005: GDP growth was 2.5 percent and GDP per capita 2.1 percent between 1973 and 2005."

Jay Learned - 2022-07-16

One of my History PhD minor fields was Soviet history. The details of this thesis are new to me, but the evidence is solid; I found only minor points with which to take issue. As an American living in rank-heavy China, I am pondering the flaws of hierarchal or extractative systems. They can grow rapidly early on (North Korea grew faster than South Korea until 1970), but seem destined to run out of steam, as there is little incentive to create or modernize. He highlights the importance of power in this dynamic, how Russian leaders chose economic stagnation over industrialization, because of its implications on power. Culture also plays a role. Nice food for thought.

Laurens van den Berg - 2022-09-15

@Dinggis Khaan yeah, I apologize. It's just with the way the algorithm works, I had yet to find anybody who disagreed with anything said in the video. It makes you assume the worst every time. I'll try to be more careful interpreting what I read.
It was nice talking to you :)

Dinggis Khaan - 2022-09-15

@Laurens van den Berg No problem. The algorithm really does do that, and I didn’t mention anything about the video itself so it was relatively safe to assume I agreed with the video. I apologize as well for telling you to touch grass, although that’s still generally good advice for everyone lol :)

Kim O'Brien - 2022-09-19

@Dinggis Khaan All the theories of a self reforming capitalism require capital to be actually producing value and not merely accumulating. Since if all capital does is accumulate and then demand a return than it must come to an end as the investment rises with machines replacing labor and labor as the source of profit goes down the natural tendency is for capitalist profit rates to decline. To counteract the declining profit rates the capitalist use to cut wages but now with a central bank wages are cut by inflation as property values in dollars rise. So as can be seen capital did not get very far by ending the Gold standard. Today they are in a world crisis of monumental proportions with no clear way out except for war and fascism something that humanity armed with nuclear weapons can ill afford.

Nostalgic memories - 2022-09-30

https://www.youtube.com/watch?v=Hcl3R-yARX8

Jacob S - 2022-10-03

You an anarchist?

kriegsmaschine - 2022-08-08

The American industrial class has a track record of aiding the nation's communist competitors. Stalin's planned economy, from the manufacture of tanks and planes to agriculture, could never have functioned without direct help from American firms. (S. McMeekin, Stalin's War)

Laurens van den Berg - 2022-08-27

But East Germany would've done better if its neighbours wouldn't have got free money from the USA

a arias - 2022-07-26

I just found your channel and so far I like your content quite a bit. I just want to point out a "minor" mistake: I couldn't find extractative on google at all! I guess you meant extractive. Also in the graph at 3:52 you wrote "extractatice" (not even extractative). thanks for the great content!

Xapheus - 2022-09-23

Just found this channel as well, and I agree. Unfortunately, that was just the first of many spelling issues in this video which detracts from its otherwise good content and narration.

Daniel Lassander - 2021-10-29

One minor point i think should be added here, is that a lot of the industrialization of the USSR came from other countries, namely the western capitalist countries. They didnt have the know-how nor the engineers at the time to expand their industrialization as almost everyone was stuck working at a farm, so what they did was they sold off wheat and other food stuffs which they did have, and spend that money on hiring people from the capitalist countries that had the know-how the engineers etc etc, so they could grow their economy for them.

There is a very interesting historical examination of this but i cant for the life of me remember by whom, he examined the USSR's growing industrialization and how well it was linked with hiring people from other countries. And nearly all of their expanding economy at the start came from hiring people from capitalist countries, but it slowly changed over time as they gained the know-how and grew their numbers of engineers.

Jamie Scholl - 2022-07-19

one might also argue that the monarchy gave birth to capitalism

micky caneloni - 2022-07-19

@Jose Santana It seems to me that the systematic and proactive repression of sections of the population or specific individuals who fulfil specific attributes actively singled out as "enemies of the state" by the USSR leadership and consequently purged or left for "later" cannot be compared to police brutality as an equal, they can be compared yes, but they are not at all equal, at least not in scale (from specific and sporadic circumstantial events to a structured internal system within the basis of the nation's manifest destiny).


Clearly a conflict of interests and ideologies accompanied by crisis and instability, accompanied by a good dose of fanaticism, ignorance, cruelty and chauvinism gives rise to massacres. But I remind you that blood continued to flow even when there were no internal reactionaries alive, and if there were, they were irrelevant.


Even when the Union of Soviet Republics consolidated itself as a power in its own right there was bloodshed, sometimes in collaboration with its most rabid reactionaries, and there are several well-documented (as exploited and manipulated it must be said) examples of this. At the risk of sounding cliché or repetitive I leave Katyn and Kronstadt as testament to this (among others).

I have to say that I do not leave this as a vague response and pure whataboutism, I leave it as a reminder that in politics, everyone has to face up to the responsibility of their actions, and everyone does so for various reasons.

Jose Santana - 2022-07-19

@micky caneloni Yeah, the USSR could've handled some things better, but I won't hold acts of state violence against a nation that was trying to give its people what it deserved while battling the entire imperial core. They sacrificed so many lives in their fight against a fascist nation, and even in their weakened state, they manage to give their people what they need to live a decent life. Your paragraphs full of big words says absolutely nothing or raises any good arguments against the Soviet system. Once you make a coherent argument with big word soup, we can have an actual conversation

woobilicious. - 2022-07-21

@Jose Santana Japan was the second biggest economy in the world after WWII up until the German reunification, and they were literally bombed head to toe by the Americans, saying the USSRs genocides were necessary, while ignoring the other objectively better liberal market examples, shows just how much of a sociopath you tankies are. Japan still exists, it has a thriving economy, much like the other Four Asian Tigers. Meanwhile socialist countries in Asian are objective worse and they all hate each other, most have committed a genocide, and most live in poverty, the idea that communal ownership is morally good is why socialism and Marxism turns into tyranny and poverty, you're explicitly rejecting the very things like private property rights, that liberated the peasants from feudalism.

Jose Santana - 2022-07-21

@woobilicious. HAHAHAHA!!! You're talking about ignoring genocides but you talk about Japan totally forgetting they were a fascist nation which committed horrendous atrocities against Chinese and Korean people. Bruh. Vietnam has been able to come back off a disastrous bloody war, remain socialist, and prosper. If you're going to use an example and accuse me of defending genocide, for the love of god don't use fricking Japan, good lord. Also the definition of private property in Marxist terms is the private ownership of the means of production. You're mixing private property with personal property.

Ri Nima - 2022-06-27

I was half expecting some left wing communist nut to tell me how great communism was and then blame the West for its failure but you actually did a very decent job in analyzing the system in a neutral and objective way. Well done!

Ivan Attak - 2022-07-07

The narrator greatly undermines the development of Russian economy from 1870s to 1913. According to A. Gerschenkron, Russian industrial growth was at average 6.45% per year from 1885 to 1913.
From 1907 to 1913, Russia was the FASTEST growing economy in in the world, with growth rate of 7.5% per year.
Even aside from that, it is inadequate to call Nicolas II an incopetent czar. His reign was a period of rapid liberalisation, democratic change, technological progress and economic reform. His main fault was lack of efficient anti-revolutionary propaganda or state ideology, which lead to success of socialist populism.
Retrospectively, Nicolas II was slandered in bolshevik history literature in order to justify the start of Civil War and the following socialist reign, especially Stalin's bloody industrialisation. Their pessimistic point of view is now entrenched both in russian and western history works. Modern economic history studies, such as Guriev's, don't back the general point of view at all. In fact, they are very optimistic about the perspectives of czarist Russia in post-war world.

Jimmy Jimmy - 2022-07-09

Meh... Actually this whole video looks like it was made by some american high school student whos read something somewhere.

Ice Cold - 2022-07-08

I remember that I have heard that in 1914 Germany decided to support the austrains in invading serbia to provoke a war with Russia, because supposedly the germans had estimated that if Russia kept industrializing unmolested, they would have become the most powerful military in the world by 1917.

But after seeing your video all the way up to 11:00 more or less, I gotta wonder how realistic this was.
Cuz sure, Russia had the resources and size to potentially become an industrial juggernaut, but by introducing me to the concept of creative destruction you made me realize that... I mean... wouldn't russia collapse before 1917 if it kept industrializing? the growth of a middle class would eventually add pressure to transform Russia in, to the very least, a constitutional monarchy, something that Nicholas, after dismantling the Duma, was very clearly not gonna agree to. Best case scenario Nicholas ends up in front of a shooting squad and a new dynasty takes power and agrees to make it into a constitutional monarchy, plenty of european nations went that way, worst case scenario, a communist takeover just like it happened, which again would have been such a messy process germany would probably have been able to just walk it's way into St. Petesburg by then without firing a shot.

sえbえlbうb - 2022-07-11

Germany didn't want to provoke a war. Just read the private letters to the Austrians

Ice Cold - 2022-07-11

@sえbえlbうb I thought this was a comment about WW2 germany and I was about to drop so many insults...

But you mean WW1 germany. So:
As I said I heard that germany was actually looking forward to fight with Russia because they felt they had to fight now or face an even stronger and more industrialized Russia later. Worse of all, the Austria-hungarian empire was dying, so it was better to squeeze what little juice was left out of it before that orange was rotten.

What do this letters say?

Přemysl Šedý - 2022-07-15

Another lesser fact know in the west. After 1945, the USSR was using east european countries as its collonies. These countries had to support extremely uneffective soviet economy and had to cooperate in so called Comecon(RVHP in czech) which caused, that more modern countries such as East Germany, Czechoslovakia or Hungary, had to support the worse ones. This caused another degradation of the economical growth.

Antoine Dellisse - 2022-01-06

Babe it's 2am. Time to watch a half-hour long documentary

Beefparade 💪💦 - 2022-07-14

Same here! Lol

farraj abd - 2022-07-14

@Beefparade 💪💦 nice

farraj abd - 2022-07-14

@Beefparade 💪💦 also yes I'm watching it again

TheWalkingTree - 2022-07-15

I started watching this at exactly 2:00 am so um yeah

Carlos Gonzalez - 2022-07-31

Exactly! 2:03AM now 😆😂🤣

Ryan Francis - 2022-07-28

The Russian economy and productivity was growing year on year in the early 20th century; it was one of the reasons Germany was so intent on fighting them as soon as possible.

Anonymous - 2022-08-13

@Paul Are you offended by the fact that 80% of all German losses were on the eastern front?) In Stalingrad alone, the Germans lost more soldiers than on the entire western front ;) It is well known that 90% of all Lend Lisa began to enter the USSR in the summer of 1943, when the USSR had already won the battle for Stalingrad and the battle for Kursk, and went on the counteroffensive. I'm not even talking about the fact that trucks, tanks, etc. were in poor condition, inferior to their Soviet analogues. You can carry western nonsense, but if you say "Your grandfather fought with American weapons, wore American boots and ate American food" to any Russian, he will just laugh 😂

Jetman 33 - 2022-09-01

@Anonymous 1, L. 77–11, H.R. 1776, 55 Stat. 31, enacted March 11, 1941), was a policy under which the United States supplied the United Kingdom, the Soviet Union and other Allied nations with food, oil, and materiel between 1941 and 1945.
2. The Battle of Kursk was a major World War II Eastern Front engagement between the forces of Nazi Germany and the Soviet Union near Kursk in the southwestern ...
Location: Kursk, ‎Kursk Oblast‎, ‎Russian SFSR‎, ...‎
Territorial changes: : Soviets regain territory al...Wikipedia
Date: 5 July 1943 – 23 August 1943; The Russians had a large amount of Lend Lease by the Battle of Kursk.

Kim O'Brien - 2022-09-19

@Jetman 33 Technology and weapons are not the sole factor in any combat for the ideas in men's minds also play a role and the Red Army lead by Trotsky defeated 14 Imperialist armies including the US/UK. In Vietnam the American Imperialist were handed a humiliating defeat by both an US and world antiwar movement and the fighters for Vietnam liberation from Imperialist domination. As Lenin recognized the fight by the colonial and semi colonial countries for liberation has a revolutionary socialist red tinge. In 1920 the Bolsheviks organized a Congress of Peoples of the East to fight the Imperialists.

Elen Degenerate - 2022-09-23

@Kim O'Brien cope

Gabriel Elyas - 2022-09-30

@Anonymous And there is one more important detail: Soviet Union spent $192 billion. The US sent around $11 billion in Lend-Lease supplies to the Soviet Union during the war, only 5% of the total.

**Wells, Michael; Wells, Mike (2011), History for the IB Diploma: Causes, Practices and Effects of Wars, Cambridge University Press,

Tommy Flowers - 2022-08-29

Having demands from the higher-ups that managers need to increase production output with the same number of input every year, and management not wanting to overshoot those targets for fear of making things more difficult in future years is not a problem specific with communist economics. I guess you've never worked for a large western corporation before.

borderline - 2022-09-01

I can't remember the exact phrase, but it's something like "the reward for hard work is more work" and I heard it a bunch working in both small and larger companies in the UK. It's most definitely not a Soviet thing, or a socialist/communist thing. I actually worked one job where a guy got promoted to manager for his hard work, but didn't get a pay bump. His reward for working hard was longer hours, more stress, and more responsibility. I felt better for being a line worker, at least I got to go home on time.

SPQR - 2022-07-15

Excellent analysis! Good job dear author! Also, Russian have they saying "sometimes you have to change everything, if you want everything to remain as it was". I think it's the best description of what had happened after the October Revolution. The tsar had been replaced by the red tsar.

Jay Learned - 2022-07-16

Communism came mostly to poor, backward, corrupt, centrally powered states, which then became less poor and backward, but still corrupt and centrally powered. I compare it painting a house red; it's the same house inside. East Germany...had this imposed on it.

Kim O'Brien - 2022-09-19

That shows how contemptuous you are of the Russian working class. As Trotsky said had nor the Bolsheviks not taken power with the Soviets when they did Fascism would of have been a Russian and not an Italian word. The Bolshevik slogans of Peace without annexations and turn the guns around were popular among the soldiers of all the Imperialist armies.

jeff archibald - 2022-06-24

I was in Russia after the fall. At one place there was a 15 hp electric motor running a little time card machine.

Just Haw - 2022-06-17

Loved the video, but there's a lot of context that's been left out. around the late 12:00 minute mark you begin to explain that the Bolshevik party begins to become "tyrannical" and over controlling. Though in many ways this is true and I in no way claim that the early Soviet government was without faults, there's a lot that has to be considered. A very young Soviet Union faced incredible amounts of attempted destabilization by wester powers, as well as opposing factions right at home (White Army). The USSR from the moment it came into existence found itself constantly threatened, you bring this up in quoting Stalin on his speech about the 5 year plan. If you take this into consideration a tight "tyrannical" government with trust issues begins to make more and more sense. This doesn't mean in any way that actions taken were not at fault or completely justifiable, but no person can always be right especially when you have the weight of a country on your shoulders.

My second point is on the topic of incentives. around the 16:00 minute mark you talk about a lack of incentives for workers in the USSR. When taking pay into consideration the sound of a flat un-increasing or decreasing pay sounds unfavorable, this leaves a lot out of context. A common misunderstanding about being paid in the USSR is that not everyone was paid the same wage. The way it would actually work is a worker was paid by the value of their labor, meaning for example a rocket scientist or a factory worker was not paid the same wage as someone who worked as a janitor. Now this may also sound incredibly unfair but you must keep in mind that these wages were not impossible to live on and things like bills, education costs, and housing costs are all tossed out the window and simply provided for you, and even in the cases where workers rented housing, rent was such an incredibly low amount that it wouldn't take even up to 5% of your pay where as today it takes many unfortunate workers up to 70% of their pay. Which brings me back to the point of the incentives you speak of in your video, and why I would like to share that that may not be completely true. With things like housing pay, education costs, etc. out of the way workers had their earned pay to spend however they pleased (if said item was available, again another admitted fault), and apart from money workers had the time to pursue what made them happy. One example of this was after the dissolution of the Russian Empire under the Tsar, there was an explosion of talent in music's and arts now that workers weren't constantly toiling away in the fields.

There's a lot I would continue to comment on but I'm tired and no one wants to read an essay on a youtube video lol.
Overall I loved the video man, Its hard to find people who are willing to look at and talk about Russian history who aren't biased out of their god damn minds and simply aim to shit on the history as much as possible. I wish you much growth on your channel as its cool enjoyable content.

dkeith45 - 2022-09-03

For more interesting info on what it was like to live in the USSR, check out Sergei's channel 'Ushanka Show'. His videos on what it was like to live in the USSR as a Ukrainian born in Kiev in 1971 are great. He's currently a resident of the USA in Michigan. Sadly he as a terrible case of TDS. But his videos on life in the USSR are great. One is, 'They steal everything' about the culture in the USSR of stealing from your work place. Thus the best job in the USSR was a waiter or waitress as you could steal food and booze to resell on the black market. The worst job was an engineer who would only be able to steal pencils and paper. Theft was so bad, those who had cars, even the police had to remove the windshield wipers and keep them in the trunk otherwise they'd be stolen. They were only reinstalled on a rainy day.

Deep Fried - 2022-09-10

By the way Kiev is a russofied version of the original Ukrainian word Kyiv. Russians have been trying to destroy Ukrainian culture and they are also trying to russofy it like they did with many other countries.

Kim O'Brien - 2022-09-19

@Deep Fried Lenin declared war on Great Russian chauvinism. Now Putin is trying to rebuild a Czarist prison house of nations.

JC - 2022-07-12

One major contributor to the USSR's downfall is that after the death of Stalin in 1953, the murderous "Great purges" ended allowing population to rise. Many people that worked themselves to death in the 20s and 30s were 'purged'' in the late 30s, including unfortunately 75%++ of the USSR's Army and Naval Officers which is why the Soviet Union was so unprepared for WWII.

Bjørn Max Hansen - 2022-06-10

This is why it could be interesting to see if France had gone communist in the 1920's and instituted a similar model in their society. Maybe it would have worked since France had progressed the same way as other western European countries in terms of the feudalism issue.

Boss Attack - 2022-07-11

Honestly, this video is kind of an embarrassment and lacks basic knowledge of Russian history, communism, and central planning. It's a video from a capitalist perspective attempting to explain Soviet economics based on pop-history they learned from Western capitalists seeking to justify the status quo of capitalism.

EDIT:

And I say this as someone that doesn't believe in communism but more social-democracy. The people communists tend to hate most, lol.

Alexandr Radecký - 2022-06-12

One of the many misconceptions about the communisty economies was the right to have a job. There were no such thing, instead there was a duty to work. So the state could leave you jobless of force you to do a job somewhere not in the city you live, not in your specialization and for some pennies you couldn't live from. This was a common way how to deal in some "soft" way with dissidents in the communist Czechoslovakia.

James Francese - 2022-05-31

I think it’s strange that all these “Soviet economics breakdown” videos eventually lay bare a family of high-concept assumptions that capitalism is inherently successful when implemented correctly (despite many dramatic and deadly historical failures of capitalist economies on the record), but that the failures of communist economics are a consequence of communism being implemented correctly, rather than incorrectly. I find such accounts almost meaningless, and not providing a comparative analysis at all; instead, all we get is a stereotypical ideological framing of fragmented historical information. Too bad.

Cancer McAids - 2022-07-10

Yes, I had the same reaction. This video confuses how capitalism works "in theory" with how it works in practice, glossing over the fact that capitalist economies suffer from highly destructive boom-and-bust cycles when not subject to extensive government regulation and intervention. Cycles which we're currently living through thanks to the erosion of many of those regulatory mechanisms. The Soviet system was essentially the opposite problem: massive over-regulation and interventionism without the incentive-based engine necessary to fuel growth.
Its points about the failure of communism are accurate, but I could do without the disingenuous GLORIOUS CAPITALIST SYSTEM compare-and-contrasts; they are, ironically, very Soviet.
A more grounded analysis would look at where and how both systems have failed, and reveal that a mixed economy is the only way to get stable growth and prosperity.

Lobos222 - 2022-07-10

@Cancer McAids Boom and bust, in a FUNCTIONAL economy, is almost unavoidable unless you start to dictate what people are allowed to do. Which in turn makes it into a command economy and usually creates issues with inefficiencies, which ironically, in turn again, rebounds to a more open ended market

(Plenty of Social Democracies have had this issue in some areas because they have a mixed economy. Some areas there is less focus on efficiency vs other factors. Example, prison system, military, health etc and therefor they are still under governmental control to the point it can be considered socialized control. However such was with transport, used as an example, as well and why such lessons have been learned).

This notion that boom and bust is a "capitalistic thing" is silly. Boom and bust is a HUMAN thing when they are allowed to do what they want.

There is high demand for transport, for example, more people will start transport companies. At a given point there will become such that there is more capacity for transport, aka supply, than there is demand for transport. This could ether be that you dont need more than 100 units of transport for a 100 units of goods or there could be other issues a factory blows up and in turn those 20 units of goods it created wont need transport for X time. Meaning that even if you had 100 to 100 equilibrium. You now suddenly have a 80 to 100 imbalance or goods level can stay at 100, but more transport companies have started up so supply is at 120 or... a combination of 80 to 120. Aka some companies will go under... and a "bust" in one area might affect others (people losing their jobs means less buying power, less buying power in large enough segment of the population also means less demand) and in turn you get a recession until it bounce back because supply, again, falls under the level of demand.

In short, people that equate boom and bust to capitalism rather than understand such as a human factor in context of free will and opportunity to follow such will. Do not know what they are talking about.

Cancer McAids - 2022-07-10

@Lobos222 **facepalm**. Yes, if you allow people to do whatever they want you get a boom and bust cycle *because that's what unfettered capitalism is*. Capitalism works, with certain restrictions. Which means telling people there are some things they can and cannot do. Which is what regulation is. That doesn't mean you've implemented a command economy. Stop engaging in false equivalencies.

Lobos222 - 2022-07-13

@Cancer McAids You should understand what I am saying before you act like it is a false equivalencies.

People "doing whatever they want" isnt JUST people that start to paint on their spare time or spend more time with their kids etc.

It ALSO includes people that start business in order to make money. So yes, IF you allow people to do what they want, one of the side effects of such is that you will get imbalances in supply and demand BECAUSE more and more people want to go into something, that at the time, seems to be going good. Be it selling burgers, cars, bitcoin, shipping or whatever. With more and more starting such bis, you add to the supply and at some point there will be more supply than demand or more service access than people with need. In a large enough context. Such eventually leads to a boom and bust cycle and if you removed Capitalism today, that would NOT change!

The business cycle isnt something that is inherent to capitalism, but it is something inherent to human behavior within an economy.

That you have a bunch of socialistic economy supporters that PRETEND otherwise. Does not make it fact. Which is why you hear the same group of people NEVER address, for example, huge black market, supply or true demand issues within a socialistic economy.

Oncle Sam - 2022-08-01

Nope ! Capitalist economies are, as a matter a fact, very successful, and outperform their socialist counterparts on every point ! This is just a well known fact !

Scott M Wilhelms - 2022-07-11

Think it's safe to say that Stalin never missed a meal unlike the farmers in the fields. 😒

Absolute power corrupts absolutely

Clark Kotte - 2022-05-14

I'm honestly curious about where you got the fixed wages thing? Yes, that was the case in certain times, in a few primary sourcea, pqy rates and their change over time increased. Look at for example Behind the Urals.

Laurens van den Berg - 2022-08-27

Yeah, I thought in the first decades they didn't even want to use fixed wages (for that time), they rewarded you for your labour.

Janusz Krysztofiak - 2022-06-06

Actually, the so-called "second serfdom" in the eastern (tightening of control over serfs) part of Europe did not have result in centralized absolute power as in Russia. In Poland, it led to... weakening of the royal power to the benefit of nobility. Nobles empowered by increased ownership over their serfs, and high demand for their produce in the 16th century got strong enough to widen their political powers at the expense of the king and burghers. Generally, Poland transformed into a sort of a republic: nobles elected, impeached kings. At the local level, nobles ran a sort of self-governing bodies, which voted on local affairs and delegated members to the country's parliament/diet (naturally only composed of nobles). Peasants were reduced to slavery: not only were they unable to leave the land without permission but there were cases of trading them like livestock and they could not appeal to royal courts - their lord was their judge and master of their lives. Burghers and cities started to vegetate due to unfavorable laws enacted by the nobility. The next stage of the system was an anarchic oligarchy: a dozen of rich noble families accumulated so much wealth, that they could raise private armies and buy the votes of poorer nobles - unlike elsewhere, nobility was numerous in Poland and amounted to even 5-10% of the population, so it was stratified economically, many did not own any estate altogether, the only things differentiating them from peasants being personal freedom and political rights. Under the shock of the first partition, some top families pushed for reforms, so the last stage was a proper, "English-like" constitutional monarchy when the national constitution was adopted in 1791. Alas, the extractive second-serfdom could also end up with a constitutional monarchy. The reasons why Russia has almost always been a tyranny are more complex.

Unsustainable Smuggling - 2022-06-16

I've also seen arguments that the Polish noble class also hurt Polish sovereignty and nationalism overall by often being easily lulled by Russia, Austria, or Prussian neighbors to snap off pieces of the country over the centuries which in many ways makes them more like the Holy Roman Empire than a republic per se.

ironhead2008 - 2022-06-19

@Unsustainable Smuggling It was less "The nobles were fooled" and more "The nobles were bribed": The senior nobility in Poland-Lithuania had what was called a "Librum Veto": during most normal meetings of the legislature (the Sejm) all it took was one senior noble objecting to grind everything to a halt. The Austrians, Prussians, and Russians exploited this constitutional quirk to eventually destroy Poland. The reforms of the 1791 Constitution were only possible because they were enacted by a "Confederated Sejm" which were immune to the librum veto. By this point Poland was so weak militarily that the Russians, Austrians, and Prussians were able to roll in under the pretext of "defending the ancestral rights" of nobles they had bribed. Afterwards, more bribes and direct force (there were Russian troops in the chamber) led to the later Grodno Sejm ratifying the destruction of the nation. It arguably had the effect of martyring the country in the eyes of its people however. Over the next 100+ years the Poles would be a restive as all hell pain in the ass for the Czars. "Poland is not yet lost" indeed...

Alan Pennie - 2022-08-08

Polish history is fascinating.
It's a pity it's not better known.

Schoo - 2022-09-28

Where do I find out more about this?

Alan Pennie - 2022-09-28

@Schoo

Try Perry Anderson,
Lineages of The Absolutist State, a great overview of the period from 1500 - 1800.

John Meyer - 2022-06-20

On your section, "East Vs West European Economic History," I think it's significantly less black and white than you make it out to be. There were a lot of other circumstances than the Black Death that affected how Eastern European economics shaped up. Allow me to take Poland as an example. The first wave of the Black Death (1348-1349) put enormous stress on the szlachta (Polish nobility), a pressure that was dangerously compounded by the second wave of the Black Death (1360-1361). Similar to English peasants, Polish serfs had taken advantage of the chaos to achieve greater rights and better employment. The second wave of the Black Death also triggered a famine, in 1362.

The pressure was too much, causing rebellious sentiments from the uproarious serfs. They began demanding the extension of "the German Law" (a collection of very nice benefits and privileges granted to German immigrants in Poland, a number exceeding 200,000 thanks to the Drang Nach Osten ) to all Polish serfs. King Kazimierz, wishing to suppress in any case the power of the szlachta with his clerical allies, extended the German Law to the peasants, opening grain storehouses, asking only for work on public projects in exchange for grain. As a result, for a brief period in the fourteenth century, Poland was the equal of western European countries in the rights that its citizens enjoyed, not a nation of serfdom, but a nation with a villein (peasant) economy nearly identical to that found in the Germanies.

Unfortunately, this status did not last, but not because of the reasons you suggest. Polish peasants were indeed highly organized, as demonstrated by their successful "rebellion" in 1362 to attain "the German Law." The szlachta had been weakened by the plague, and in its aftermath, the Polish peasantry and even the Polish clergy were more powerful. In relation to the Black Death, Poland was just as dynamic as the Western kingdoms in its responses. King Kazimierz was brilliant in his attempts at weakening the szlachta, and by his death in 1370 had driven their influence to an all time low (thanks in large part to [1] extension of the German Law, and [2] executing Maćko Borkowicz, leader of a noble rebellion desiring Wielkopolska separatism). The szlachta called Kazimierz, "King of the Peasants," decrying his support for the common people over them, as Kazimierz repeatedly limited szlachta power, even seizing their land for the crown as often as he could.

It is due to an unfortunate series of coincidences that the szlachta returned to eminence and the Polish peasants lost their newly attained privileges. (1) King Kazimierz died at the age of 60, having reigned only 37 years. (2) He died without an heir, his repeated attempts to sire one ending in failure. (3) When it became apparent that Poland might not have an heir, Kazimierz was forced to declare King Louis of Hungary (his nephew) as his heir in the case of his not being able to produce one. (4) When King Louis ascended to the Polish throne, he was unfamiliar with the extremely dicey political situation surrounding the king, szlachta, clergy, and peasants. The slimy szlachta began reversing the political climate in their favor, taking advantage of King Louis’ confusion of and unfamiliarity with the workings of Polish politics. They clamored him during his brief stay in Poland, overwhelming him with their perspective, and finally, they succeeded.

In 1370, the same year Kazimierz died, they got King Louis to sign the Act of Koszyce, which reverted and even expanded the power of the szlachta over the peasantry as it was in Kazimierz's day. The szlachta used the Seymiki (regional legislatures) thereafter to abolish the German Law and restore serfdom. King Louis ran out of Poland with his tail between his legs, staying only long enough to bury his uncle and be crowned king, fleeing back to Hungary with the Polish crown, scepter, sword, and other royal insignia. For the rest of his reign, he ruled Poland in absentia, which gave the szlachta additional advantages in reverting the situation and expanding their powers and privileges. The szlachta retained dominance over Poland from then until the Partition.

In conclusion, the situation was nowhere near as static as you made it out to be, at least in Poland (I suspect that, if other Eastern European countries were examined, however, similar conclusions might be reached). The Black Death did trigger changes, but due to the unique political climate and circumstances surrounding King Kazimierz's death, these changes did not survive.

Karma - 2022-07-20

"You're the one to destroy the extractive economy, not join them!"

Дониер Эргашев - 2022-07-13

"To understand Soviet economy we must go back to Romans". Holy shit that deep dive

Jason Haven - 2022-05-02

16:40 this is absolutely not true. Most significant pay raises are self-made as they come from when people start new jobs, not employers giving current employees raises hence why they discourage salary discussions amongst employees

Von Kouva - 2022-06-21

Its true in theory, not in practice. I mean in "Theory" you can make your own soda recipe and become a big competitor that can overthrow Coca Cola and Pepsi, in reality, Coca Cola will buy your company and not get overthrown, talking in "Theory" when discussing economics is usually the easiest way to explain things, so I guess that's why Casual Scholar phrased it like that

Bii - 2022-07-23

Yeah exactly what I was thinking, especially for smaller businesses that rely on cheap labor regardless of the skill, eg small hats shops and malls.
If the employee works hard, they get more responsibilities, if they don't they won't necessarily get fired either.
Tho if they ask for a pay rise, no matter how hard working of an employee they are, for a job as mundane as cashier, they could leave and you could hire someone else.

Pay rises may become an option tho in interesting scenarios like you're working for the small business of a family friend, but these scenarios are not rly important

deathmetal11111 - 2022-08-02

@Von Kouva It's in theory and in practice. Google, Facebook and Amazon were started just by a few average guys 25 years ago who are now all multi-billionaires. The sugar water example doesn't hold weight because society doesn't need another version of sugar water.

Kim O'Brien - 2022-09-19

@deathmetal11111 I got the biggest pay raise of my life after the 2 week strike at Westinghouse.

Milan Acs - 2022-06-28

A fascinating topic and very well presented. Great video.

pocketdynamo - 2022-06-08

I have to strongly disagree with the notion that, in feudalism, the king had near absolute power. Quite the contrary. Absolutism was revolutionary to feudalism. Other than absolutism, feudalism was characterized by weak kings and strong lords. The land wasn't owned by the kings, but by the lords who may have pledged allegiance to the king - but may also conspire, rebel or lead war against him. The king was usually a lord himself with his own domain, but that wasn't even necessarily the case. In feudalism, kings were often travelling all the time, simply to visit their vassals and ensure their loyalty. The abundance of wars during this time stemed directly from the weakness of the king compared to the lords. Many kings didn't have the means to actually assert their power over the lords. Feudalism was basically a power vacuum that no single ruler was strong enough to fill, and the middle ages were characterised by the centuries long struggle to change that.

All of that changed gradually, in France over the course of many centuries. The result was absolutism, which was very different to feudalism and frred up the ressources formerly bound by warfare to now push economical development.

DUNGEONTNT MINECRAFT - 2022-06-19

An interesting thing to know is that this is a Soviet thing, other socialist contrys had defarant ways of working. And many had prety Good incentives but it is also safe to assume that they had good incentives because of what happened in the USSR 🤔

gameover - 2022-08-28

An extractative, non-inclusive system did evolve in the west too. But it works through different mechanisms (for now). Instead of the government forcing us work in our jobs, we do it because our system got very good at creating stuff that are in high demand. We might have to work hard for a month and a half to buy our dream phone or computer, that in many cases cots more than what we can afford. Then we pay through the nose for owning that stuff and buying for example virtual weaponry for our character in our online game, or buying a new computer because the old one cannot run the new OS, or a new hardware, because the new OS does not have the driver for our old stuff, or a new phone because youtube or android tweaked its software so that it trips up older hardware. While we buy new stuff every 1-5 years most of the time we do the same stuff that could be done on 20 year old system anyway. This is exacerbated by the increasing scientific illiteracy, when for example, you see well payed people with law degrees proudly present their newest purchase, the air cooler, that while cots much less than an AC it also contradicts the second law of thermodynamics and instead of cooling the room it in fact increases temperature, because it obviously has no way to transfer the heat outside the room.
So our system also has lots of inefficiencies, but that might lead to using up natural resources in an increasing rate, rather than limiting the system like in the soviet example.

lazarus921 - 2022-03-27

6:49 bubonic plague didn't kill as many in eastern Europe as it did in western. So labour scarcity was not as serious to cause societal changes. That was the main reason, not lords being more oppressive.

lazarus921 - 2022-07-09

@qwertyuiopasdfghj001 I'm saying lack of labour scarcity WAS the reason why serfdom survived longer in eastern Europe.
In the west bubonic plague killed 50% of population. Land owners had to compete for limited workforce. That's when people were given more rights to convince them to work at certain farms.
Once the population have grown back the land owners tried to establish the serfdom back again but people rebelled. Thousands were killed by the rich but serfdom never came back in the west.

In the eastern Europe bubonic plague barely affected the population. So there was no shortage of labour. There was no pressure to give more rights to people. Land owners didn't have compete for workers.
Additionally, when Ottomans blocked trade routes to India, China and Middle East, Europeans found other ways to get there kickstarting new age of trade. Connections with wider world and potential customers created bigger opportunities in trade and craftsmanship. Agriculture stopped being the main source of wealth.
Eastern Europe became a bread basket of Western Europe. All countries on the western coast, even tiny Portugal and Belgium, became grew rich from trade and colonisation. They outsourced agriculture to Eastern Europe. Hanseatic League had a fleet connecting all major ports between Netherlands and the Baltic.
Lack of the same opportunities in eastern Europe, increased demand for agricultural produce and plenty of workers not only meant serfdom there survived but even thrived.
In Germany after population bounced back 200 years after the plague, rich land owners wanted to reestablish serfdom again. That was 1524. Peasants rebelled. Unfortunately they were not equipped or trained as well as proper army led by aristocracy. 100,000-300,000 were killed. But the aristocrats didn't manage to go back to serfdom system. In Russia serfdom survived until late 19th century. Rebellion against the aristocracy, the rich land owners happened only after WW1. Tsar was killed, communism started. Land owners were killed or repossessed.
That's 400 years later after German rebellion.

touristguy87 - 2022-07-10

@lazarus921 ...arguably the percentage of the population that are serfs has something to do with it also.

touristguy87 - 2022-07-10

@qwertyuiopasdfghj001 Let's not try to wrap the Russian revolution with one neat, tidy bow, ok?

The simple fact is that the Soviet Union was a product of the simple fact that in the north the population density is much lower than in the south, and as a result of the extreme weather, survival depends on the production of required shelter and food, and there simply is less free time and energy to fight wars in the East than in the West. Life even in the Ukraine not to mention in Russia proper is not a simple matter of cultivation and harvesting all year, it is a brutal struggle for survival against the elements the likes of which is simply not seen in most of Western Europe. Now on the other hand you can throw in a simple fact that if Communist leaders like Lenin and Mao did not rise to the top of the heap in their respective territories, that another visionary with perhaps less socio-economic "brilliance" would have risen in their places due to the sheer power of the concept of communism and certainly at least of socialism. Much like fascism had its own fair share of proponents, much as colonialism has. It's an ongoing socio-economic battle.

We all have a choice: sit here on YT and play philosopher-king, or use our time and energy to raise our own personal standard of living in the real world (or at least in the metaverse).

Choices that simply were not available to humanity 100 years ago when they best they had was irregular land-mail.
Maybe a wireless set here and there.

Definitely not 45 billion interconnected personal computers and cellphones hosting 6 billion pirates

Joe Shmoe - 2022-07-12

To be fair it was a bit of both. While the plague was less severe in Russia, it still hit and the Russian state chose to chain larger numbers of peasants and acres of land to fewer aristocrats, as opposed to Western Europeans who just competed for labor by offering wages, something actively discouraged in Russia.

Dean Moriarty - 2022-07-12

Yeah, that's what I was thinking - it would make much more sense.

Travis Jones - 2022-05-31

Russia had industrialization in the 19th and early 20th century - nothing on the scale of the West, but it did exist. Russia began producing its own mass manufactured textiles in the 1820s and was even exporting them to China by the end of that century. Lenin was smuggled into Petrograd after the Tsar had abdicated and handed control to the Provisional Government. Following this first revolution in 1917 (not the October Revolution), the troops were given some degree of self-rule, which proved to be catastrophic and played into the designs of the revolutionaries. In 1913, St. Petersburg was one of the most prosperous cities in Europe and even had things like running water in new buildings. The Russian Empires wealth had also built cities like Riga and Odessa, which had become one of the world's largest grain-exporting ports in the 1870s. Marxist-Leninism differed from Marx'es original communism in promoting the idea of anti-imperialism, which was a key component of Soviet foreign policy in places like Africa, Asia and Latin America, winning them many allies.