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Economy
Obama = Gorbachev 2.0?
2011-02-02
Benjamin Zycher, Pajamas Media

...Let us take a stroll down memory lane. Having assumed the leadership of the Communist Party of the Soviet Union in 1985, Gorbachev understood clearly that the economy was poor in some respects and a shambles in most others. The basic problem simply couldnÂ’t be the system itself; after all, the White House GosPlan (the Soviet central planning agency) was populated with the best and the brightest. And so perestroika was the new buzz word, and the key to long-term improvement in Soviet economic performance was Â… machine tools. Machine tools were the key to the future. That was obvious, anyone could see it: The strong world economies had invested vast sums in modern machine tools, and if only the Soviet Union did the same, its economy too would be world class. Presto! The system could be reinvigorated!

Obama, oops, Gorbachev was very clear: The key to long-term growth was the continuing introduction of increasingly fast high-speed rail productive machinery and equipment....

Can anyone be surprised that the Soviet system collapsed? Just like Obama, Gorbachev had thought of everything, with the crucial exception of electric cars, expensive energy, and high-speed rail. Or the one big simple reality that central planning does not work. Just like Gorbachev, Obama has thought of everything, except the one Big Thing: Central planning does not work....
Posted by:Mike

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