prices go up?
Why.
Help.
Why is government printing more money and giving it to me a bad thing. I need it to live.
I’d like both the econ101 (fake, lib, propaganda) and the marxist (real, truth, based) answer pls.
Well, it’s what ussr did, goods were cheap, but for some of them you have to wait in a sort of a queue (I think they sold cars this way), maybe yugoslavia as well (?).
For economy number, it’s kinda meaningless thing in itself (it is why people talk about inflation-adjusted gdp, you can double gdp easy peasy otherwise).
Opposition to inflation is mainly in debt holders (banks/other states), and porkies aren’t too thrilled with it, but only if it’s accompanied by worker discontent, otherwise they also ironically benefit from inflation.
There is also kind of uncontrolled mass psychology, that if inflation happens too rapidly, it can topple the government real fast, even if people can still eat. It introduces uncertainty of what your own holdings in bank are worth, so you transfer them into something tangible (gold/beans/collectibles), so amount of money increases further than government expects, because people “don’t trust the money”
Were the USSR and other socialist states that did that successful? Why did they fall? I know that’s wildly off topic, sorry.
I think people would have accepted increased prices for faster production tbh, but god (and couple of 80 year old russian dudes) knows how pricing in ussr worked. Ussr arrived at a problem where there is nothing to spend money on, cheap stuff is cheap, expensive stuff is queued and rare. Realistically they should have started fixing it from that rare side, but instead they imploded the cheap stuff production together with expensive stuff and allowed all savings vanish in inflation after the fall.
They could have used long queues as signal that “we need produce more of that” (same as capitalist does with prices), but they didn’t, or didn’t do it enough.
So I would describe it as mildly unsuccessful in adapting to changing reality, but successful in providing for people.
How did it collapse, do you know?
Were people’s basic needs met in the USSR and other socialist states?
I thought there was a black market which made some people very powerful (party members and private individuals). They orchestrated the coup to get more power right? That’s what I’m thinking might have happened.
I don’t know how it could collapse if people were happy.
