The Soviet economy was the second largest and arguably, the second most successful economy in the 20th century. At its heights it has a GDP of $2 trillion, and it was a self-sufficient economy that produces its own fuel, machinery, consumer goods, food, etc.

The Soviet economy had an annual GDP growth of 5% for 42 years long (meaning that they outperformed all countries in the 20th century except for Japan), and it grew from a poor country wrecked by famines and civil wars into a power that rivaled the United States. But of course, it has entirely collapsed.

Now, the standard criticism of the Soviet economy is that socialism could have never worked, and it was a big mistake to try this system in the first place.

And while there are certainly many things wrong with the Soviet Union, the fact that they managed to grow rapidly and turned a nation with extreme poverty to become economically sufficient must mean that they’ve done something right. Even other poor nations with little to no hope of growing like China and Vietnam eventually embraced the Soviet economic system, with varying results.

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#Soviet #Economics #Doverhill

about economics explained, about Finance and how money works, on the rise and fall of the soviet union, This is an economics/finance video