Article: Make the bear dance. (aid to the Soviet Union)(Special Issue: The Revolution That Failed)

The statistics tell a devastating story. Soviet output fell 10 per cent in the first half of this year, faster than the U.S. economy shrank in the Great Depression. The central government is running a huge budget deficit, inflation is mounting, shortages are getting worse. As conflicts between the republics heat up, and the authority of the Kremlin continues to deteriorate, economic decline is bound to accelerate. Optimists are predicting more severe shortages; pessimists are predicting a famine.

The Soviet economy clearly needs a potent remedy to reverse its plunge. Two prescriptions are available: strong planning, or free markets. In principle, a return ...

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