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To: txroadkill

Not to overstate but Soviet economic figures were notoriously off. They used a system called “GOSPLAN” which set 5 year production targets — command economy style. Managers claimed to meet these figures, but often did not. The 14% GNP figure is in my estimate, rather low. The real numbers would never be publicly known. Moreover, with so much inefficiency in the system, a good fraction of defense spending was wasted.


15 posted on 04/22/2007 8:54:31 PM PDT by Draco
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To: Draco
Moreover, with so much inefficiency in the system, a good fraction of defense spending was wasted.

That is an understatement. Also, with the Soviet system, there was no real incentive to exceed production goals. The GOSPLAN system was not really flexible. If you, as a state enterprise manager, actually exceeded a goal, then that higher production rate became your new goal regardless of whether demand ever actually increased.
18 posted on 04/22/2007 8:58:15 PM PDT by Army Air Corps (Four fried chickens and a coke)
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