Marxist Paradox: Capitalism Drives Communism to Improve and Vice Versa

There is an interesting view that has been floated around the former Soviet Union here recently. This view pertains to economics and positive force in creation of the middle class in the United States. Prior to the Cold War, many US Communists were deported to the Soviet Union. Deportations are largely believed to have lit a fire in Communists; driving them to improve economic standards for socialists. In turn, the US expanded spending on various social and economic projects to highlight the superiority of the capitalist system. This created an early war of economic and social ideologies that led to both models taking similar, yet ultimately different approaches to achieve their ends.While FDR was giving the US a "New Deal" to dig out of the Great Depression, Stalin was introducing a plan to industrialize the USSR and expand the scope and grip of the Soviet Communist Party. Lenin and Stalin introduced the New Economic Policy (NEP) creation to stimulate Soviet Economy in the first ten years of its infancy. The United States got Social Security and the New Deal during the Great Depression to stimulate their economy. Many Americans went hungry, destitute, and hopeless during the Great Depression. To institute social and economic reforms in the USSR, Stalin created artificial starvation and mass repression of Soviet citizens.

Stalin's heavy handiness may have served to modernize the Soviet Union, but the moral, spiritual, and social repressions helped highlight the better standard of living in the democratic US. Such factors continued to be positive for the US economy. Competitive economics and social  after the Great Depression era, whilst morphing into the "Arms Race" and Cold War scenario.  However, after the collapse the markers changed, whilst former Soviet republics dove and collapse of the economy, known as “wild 90s” period in history.

The chart below illustrates the comparison of United States and Soviet to modern Russia.

In economics there is a coexistence of the traditional and innovative economies. A traditional economy is to be well adapted in the present conditions. Innovative economy.  It also have  been found income disparity between rich and poor demonstrated by a U  symbol of the relationship between income inequality and economic growth, illustrating how negative Russian economy beneficial to the United States.

Nikolai Kondratiev was a Russian agricultural economist and  a proponent of the NEP, which consisted  of allowance of the free market enterprise within communist Soviet Union in order to stimulate the economy.  He published the  first book "Major Economic Cycles" in 1925 in the Soviet Union. The research was done during travel to Great Britain, Germany, Canada and theUnited States. His  book was finally available in English and published in 1984 in America. His brilliant theory and mind unfortunately did not align with the Soviet Regime and he was executed by the firing squad in Gulag in 1938.

In the past ten years, Kondratiev waves theory has been been detected i in the world GDP dynamics within an accepted level of significance with the duration of 15-20 years per Cycle, moreover further analysis and research of his work allowed to discover shorter business cycles (third harmonic of Kondratiev). Furthermore having additional three microeconomic cycles within 1 Kondratiev marcoeconomic cycle.

Source: http://www.mitonoptimal.com/include/pdf/media/109/WeeklyComment-Week4.pdf

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Christina Kitova Twitter @CarticulusMedia