Thursday, November 18, 2010

Lenin's Recovery Plan?

After the Russian Civil War, the Soviet Union was in economic shambles, with millions starving and industry in a free fall. In his book, "The Russian Revolution," John Bradley showed that against the wishes of many of his comrades, Lenin implemented the New Economic Policy which led to a general recovery. Among the key elements of the plan were:

1. The government budget was cut.
2. More efficient taxation was implemented.
3. Land, labor & food markets were liberalized.
4. School fees & medical care were no longer free for all; they had to be paid for.
5. Pensions and unemployment benefits were available for those who contributed.
6. Outside of large industries and banks, private enterprise was allowed.

In other words, Lenin's recovery plan emphasized fiscal responsibility and a shift towards economic liberalization, whereas the Obama Administration's recover plan is fundamentally based on increasing government spending and government control of the economy. This is the first and last time you will hear me say: why can't we be more like Lenin?

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