Thursday, August 30, 2007

The planned economy was a slave economy


The War of the World
Niall Ferguson


Breakneck industrialisation was always intended to break necks, rues Niall Ferguson in The War of the World (http://www.penguin.com/), when writing about how collectivisation wrecked Soviet agriculture and how forced industrialisation misallocated resources as much as it mobilised them.

"Cities like Magnitogorsk cost far more to support than the planner acknowledged, since coal had to be transported there from Siberian mines more than a thousand miles away. Just heating the homes of miners in Arctic regions burned a huge proportion of the coal they dug up."

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