Comments by "N Velsen" (@nvelsen1975) on "How Communism Nearly Starved Vietnam" video.
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I'll paraphrase some things I remember from the lectures of Dr Leo Paul of Utrecht University.
It wasn't so much 'on the advice of'. In Russia, nobody knew how to have an economy; it had never been done before. Everything was monopolised by the state and people were essentially slaves who worked as little as they could get away with, unless they had an avenue through which to get personal rewards. By exceeding quotas, you could get personal rewards (so basically capitalism, just without money) and this could consist out of being allowed to have a car or being allowed to have a holiday home.
The ways of production were incredibly inefficient and passive. People were used to spend a lot of their day bartering and queuing up for goods instead of working, stealing was a constant thing for everybody.
So.... communism is dead suddenly, now what? How do you run a company?
They decided that everybody who worked there, would receive an equal share in ownership of the company.
Congrats, you are now 1/3200th part owner of the factory where you work. But you can't actually do anything with the damn coupon.
This is when the oligarchs were born. People who had lots of things they had already hustled and stolen their way to, would trade these company shares. Here's a pack of cigarettes for your coupon which is worthless by itself. So you hand it over and have a smoke.
Through this bartering, one person could obtain ownership over giant former state companies, suddenly stretching property inequality to extreme lengths. Income inequality soon followed.
The huge economic shock was because Russia has basically bankrupted itself through socialist inefficiency and military spending trying to conquer the world. So they were already in deep trouble.
Then suddenly its no longer socialism, but you have a population who for generations have worked the socialist way.
For example if you own or set up a company, you will your lightbulbs are breaking at an unnatural rate. How weird. Why?
Well, under socialism you can't just buy a light. Only companies could. So, you brought broken light bulbs from home and changed those with working ones at your company, stealing their lightbulb.
So you could expect your company to basically pay for many goods that would be stolen, on top of salaris, and lots of things breaking and causing inefficiency all the time.
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