The concepts of nature dynamics and efficiency of the Soviet type plan
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The concepts of nature, dynamics and efficiency of the Soviet type planned economy of communism and the western types of socialism and capitalism differ greatly. Marx believed there were five stages a society would go through: basic primitive communism, slavery, feudalism, capitalism, and finally communism. Viewing the world as being based on economy. Due to the increase in surplus and class cleavage the society's essence would change and make progress. This would have the effects of eliminating the evils of capitalism, mainly the false appearance of prices, being the reflections of the value of labor and man feeling alienated from all that is him-himself, his work, his product, his fellow man, and life in general. He found the other previous systems to be inefficient due to the anarchy of the market in capitalism for example, high unemployment when the system of mass production and the forces of production (technology) replace the worker. Marx viewed the economy to be full of constant change and tensions between the forces of production and the relations of production. His theory of thesis, negation, anti-thesis, negation of negation, and finally synthesis of the first and second as the basic evolution of life. Marxists thought true freedom would be brought out in communist economic systems. Of course, Lenin and Stalin distorted Marxism and repression, misallocation of the surplus to the government, instead of capitalist firms was evident. Marx viewed capitalism as exploitation.
Pareto virtually states that considering in utility, derived from what people are willing to pay and what people actually pay, efficiency will emerge. Yet this must be based on a society of free choice, where individual desires and wants determine the allocation of goods and services; hence, not creating a surplus or an arbitrary price.
Keynsian economics was adopted mostly after World War II. Even capitalist society's found it to be necessary for the government to intervene more in the economy. This is more typical of Western Europe. Practices such as wage restraint, currency devaluation, and the deflation of the economy were instituted according to various historical and physical make-ups of different countries. While these practices are still used, with linkages to each other's currencies and cheaper labor in up-coming Asian markets, many of these practices have been undermined. Yet in Eastern Europe, these practices of efficiency could not be as implemented. Not being as stable in government, abundant in raw materials, or having currencies that could even com close to the strongest world currencies of the mark, the LE, and the dollar-their economies relied greatly on the help of the western world. Yet when production of industry increased in some countries after the war, with events like the Stock Market Crash, etc., these small, exporting countries were left to wither. This loss in stamina by the people is evident in Czechoslovakia, when the moral obligations to communism weren't strong enough to keep the economy going.
Socialism and communism seem to be able to work in either a closely knit society, such as, Sweden where there is collective support and participation in the economy and the sacrifices to be made are accepted, not forced. But Eastern Europe is so diverse, and under communist rule, was so oppressed, that there wasn't a collective idealism that existed. Many take the economy of capitalism to be anarchy, but the Soviet type of communism that existed, seems to be more anarchic because it is a pseudo economy, in which there is no relationship between supply and demand. This, of course, seems more wasteful and either creates a vacuum where goods are needed or a surplus of those that aren't. Many critique Marxism, for example, Nove-accenting the problem of scarcity of resources and in the past, the Left Ricardians, and other western socialists, like Keynes.
Czechoslovakia has gone through many changes. During the Nazi regime, with the advancement into Czechoslovakia after the Munich agreement to allow Hitler to occupy the Sudatanland, and then the further invasion of Czechoslovakia was completely terrorized under a totalitarian regime. With the liberation by the Red Army, the Czechs were initially pleased, but soon, the practices of communism were just as harsh. The economy was naturalized, censorship, etc. was implemented and those thought to be anti-communists were executed.
Alexander Dubcek was a high political figure trained in
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Socialism, Economic ideologies, Communism, Anti-capitalism, Eastern Bloc, Types of socialism, Capitalism, Economic system, Warsaw Pact invasion of Czechoslovakia, Anti-communism, Prague Spring, Communist society
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