New Visayan Islands wrote:Austrasien wrote:It probably isn't too wrong to conceptualize the Soviet economy as a single massive corporation headed by the board of the Politburo.
Lenin was an enterprising founder in the vein of Steve Jobs/Henry Ford. Stalin was Jeff Immelt and the purges were a vitality curve. The Nomenklatura being the MBAs. The collapse was when it went bankrupt after decades of MBA tinkering.
I wonder what the analog to insider trading would be?
Gallia- wrote:Personal profit extraction by GOSPLAN bureaucrats.
BASICALLY
Inside trading properly is a situation where an insider exploits their information advantage to bilk outside investors by unloading onto them something which only the insider knows will soon become much less valuable - but its hard to operationalize the concept in the absence of a market price and the USSR was neither fully integrated with global markets or possessing much in the way of internal markets.
As prices were mostly fixed and mostly arbitrary the opportunity for graft by simple skimming (divert products, hoard, re-sell on the black market) was enormous and generally far easier than a price manipulation scheme in an economy where prices were dictated by throwing darts at a board in Moscow.