Socialist Planning Failed from the Very Beginning

That the planned socialist economies of the USSR and Eastern Europe suffered from serious dysfunctionalities was revealed already in the 1950s  by American scholars based on interviews with former managers. The Hungarian economist, Janos Kornai, was the first to reveal in 1957 from within the Soviet bloc that the socialist planned economy was not even planned. Kornai went on to study the pathologies  associated with planned socialism, such as soft budget constraints and shortage economies that threaten to bleed over into  contemporary market economies.

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