“How did the cash flow stop for the Soviet Union?”
The problem with the USSR was that without a market system the command economy relied on the notion of “work hard or you will be shot.” Once Gorbachev removed the heavy handed restrictions workers stopped showing up and the economy collapsed.
The problem with the USSR was that without a market system the command economy relied on the notion of “work hard or you will be shot.” Once Gorbachev removed the heavy handed restrictions workers stopped showing up and the economy collapsed.
At some point the cash flow will stop here also.
Not exactly. Reagan properly understand that the Soviet Union had a third world economy. He setup a plan to cut off hard money revenue sources, the biggest being oil and gas exports. Baker as Treasury made the dollar super strong which, along with getting the Saudi to pump like crazy, collapsed the price of oil to $10, starving the Soviet cash flow.