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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 387.98+1.3%Nov 28 4:00 PM EST

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To: THE ANT who wrote (54874)9/13/2009 2:14:50 PM
From: elmatador1 Recommendation  Read Replies (1) of 218084
 
The other return to natural size: USSR. Scarcity is better managed by the state. Distribution via state makes sense if there is too much people wanting something and too les to distribute.

If one country has plenty, then the state do not need to interfere. Communism made sense as the fruits of labor were scarce. Thus equalization via state mechanisms was good.

That is the theory. Man is a hogger by his own nature. Thus once the production increased instead of distributing it in a equal way, the state used the surplus for its own goals.

MIGs, tanks, space race and making a nice living for the ones in power and connected to it.

Two things conspired against communism:
They did not have price mechanism to value goods and services.

They did not reinvest the surplus in modernization and the system collapsed.
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