Economic Update with Richard D. Wolff

Episode: Rise and Fall of the USSR
Date: June 20, 2019

Episode Overview

In this special episode, economist Richard D. Wolff dedicates the full program to exploring the complex historical, economic, and social dynamics of the Soviet Union. Wolff aims to give a balanced analysis of the USSR’s rise, achievements, and eventual fall, moving beyond Cold War propaganda to focus on both the extraordinary successes and the deep contradictions that led to its collapse. Listeners are guided through a critical and nuanced narrative meant to inform present-day discussions about socialism, capitalism, and alternative economic systems.

Key Discussion Points & Insights

1. Historical Backdrop and Revolution

• Late Feudalism and Early Capitalism in Russia (00:45–04:40)
  • Pre-revolutionary Russia was marked by extreme poverty, inequality, and backwardness, with late-ending feudalism persisting until the mid-19th century.
  • New capitalism was largely foreign-owned and did little to alleviate widespread misery.
• World War I and Revolutionary Fervor (04:41–08:05)
  • The devastation of WWI and the failures of both feudal and capitalist systems created immense public desire for change.
  • The Bolshevik (Marxist) and Socialist Revolutionary parties led a successful alliance, resulting in the 1917 Revolution.

“The old government, the Czar, fell, and a new revolutionary government took over. And it was heavily influenced by the leaders of the Bolshevik party, who in turn had been influenced by Marxism.”
— Richard Wolff [07:15]

2. Early Soviet Policies and Misconceptions

• Immediate Reforms Post-Revolution (08:06–11:25)
  • The revolution's slogans were “bread, peace, and land.” The land was distributed as private property to peasants—countering the myth that the Soviet Revolution was fundamentally anti-private property.
  • Guaranteed provisions of food, housing, education, and healthcare were established.
• Foreign Intervention and Civil War (11:26–14:50)
  • Soviet Russia faced immediate invasions by France, Britain, Japan, and the United States, as well as internal civil war (Red vs. White Army).
  • Despite severe hardship, the Red Army, led by Leon Trotsky, prevailed.

“The United States landed troops on Soviet soil. The reverse never happened.”
— Richard Wolff [12:35]

3. Reconstruction and Industrialization

• Recovering from Total Devastation (14:51–17:20)
  • In the aftermath of wars and invasion, Russia was left destitute.
• Stalinist Drive and Economic Growth (17:21–20:38)
  • The focus under Stalin became rapid industrialization and military development at the expense of consumer goods and civil liberties. Agriculture was collectivized, and industrial output took priority.
  • The Soviet Union’s rebound—from utter destruction to becoming the world’s second superpower by the 1970s—is characterized as a historic economic achievement.

“That kind of economic comeback and economic growth...had never been equaled by such a large economy in such a short historical time.”
— Richard Wolff [19:25]

4. Social Experiments and Their Suppression

• Early Socialist Experiments (21:10–23:24)
  • The USSR experimented with household communes, gender equality, and ethnic autonomy for its many minorities.
  • However, these experiments were mostly discontinued in favor of centralized industrialization, justified by existential threats from abroad.
• Suppression of Democratic Workplace Reform (23:25–25:00)
  • The idea of democratizing the workplace (collective management by workers) was abandoned. The Soviet state replaced capitalist bosses with party officials—maintaining a familiar hierarchy and tension between leadership and workers.

“Government officials replaced the private boards of directors, the private capitalists. But it was still a handful of officials... who told everybody what to do, where to work, how to work ... It was still that old capitalist style of internal organization.”
— Richard Wolff [24:35]

5. Consequences and Contradictions

• Status of Women and the Family (25:01–26:24)
  • Despite early promises, male-dominated family structures continued, undermining the project of social equality.
• Economic Vulnerabilities (26:25–28:15)
  • Heavy investment in arms and industrialization left consumer goods and standard of living behind the West, creating envy and dissatisfaction among citizens increasingly aware of Western prosperity.
• The Cold War and its Economic Pressures (28:16–30:25)
  • The arms race with the U.S. diverted vast resources and created a military and economic overextension that was unsustainable.

6. The Fall of the USSR

• Internal Contradictions and Collapse (30:26–33:10)
  • Ultimately, the contradictions between socialist ideals and reality—lack of political and workplace democracy, stunted civil rights, standard-of-living gaps, and bureaucratic rigidity—undermined the Soviet project from within, leading to its collapse in 1989.
  • Despite surviving war and invasion, the internal disconnect between ideology and execution proved fatal.

“The irony. The revolution survived and grew stronger with the invasions and the Civil war and the world wars. But what it could not solve were its own internal contradictions... These failures and that's what they have to be called undermined their successes.”
— Richard Wolff [32:15]

7. Comparison with China (Brief Preview)

• A Fundamental Divergence (33:11–34:00)
  • Wolff notes that, unlike the USSR, China succeeded in “cutting a deal with the West,” shaping a different economic trajectory—foreshadowing the following episode’s focus.

Notable Quotes & Memorable Moments

• On Early Soviet Reforms:

  “The notion that the Soviet revolution was a revolution against private property is false and wrong and comes out of that Cold War hysteria.”
  — Richard Wolff [09:35]

• On Foreign Threats and Domestic Impact:

  “You can ask yourself, who's entitled to be afraid of whom, given that history?”
  — Richard Wolff [13:00]

• On Forced Industrialization:

  “They went on a kind of forced industrialization march led by the forcible leader Stalin. Civil liberties thrown to the side, individual freedoms repressed. Absolutely, that's a critique ... but it's important to understand why it happened and in the service of what it happened.”
  — Richard Wolff [18:50]

• On Lasting Contradictions:

  “It was something that ate at the viability of the Soviet Union itself.”
  — Richard Wolff [24:50]

• On the Ultimate Lesson:

  “The lesson to be learned is, of course, can we get the benefits without paying the costs?”
  — Richard Wolff [20:15]

Timestamps of Key Segments

• 00:10–04:40 | Introduction & Pre-Revolutionary Russia
• 04:41–08:05 | The 1917 Revolution, Parties, and Immediate Changes
• 08:06–11:25 | Land Reform & Social Guarantees
• 11:26–14:50 | Civil War and Foreign Invasion
• 14:51–20:38 | Stalin, Industrialization, and the Soviet Comeback
• 21:10–23:24 | Early Socialist Social Experiments
• 23:25–25:00 | Suppression of Workplace Democracy
• 25:01–26:24 | Gender and Family Contradictions
• 26:25–28:15 | Arms Race and Economic Challenges
• 28:16–30:25 | Consumer Goods vs. Military Spending
• 30:26–33:10 | Internal Contradictions and Collapse
• 33:11–34:00 | Preview: Fundamental Difference with China

Language & Tone

• Wolff’s tone is educational, even-handed, and slightly conversational. He frequently rebuttals simplistic myths or cold-war era generalizations.
• His approach is a deliberate attempt to present both the positive achievements and the profound failures of the Soviet experiment, always aiming for historical balance and relevance to current economic debate.

Summary Takeaways

• The Soviet Union’s transformation from devastation to industrial superpower was historic and inspired many poor countries.
• Major achievements were accompanied by immense human, social, and political costs—the suppression of civil liberties, persistent inequality at home and work, and eventual economic stagnation.
• The fall of the USSR resulted not merely from foreign hostility but from unresolved internal contradictions between socialist ideals and lived reality—providing critical lessons for future efforts to build alternative economies.

For more depth:
Wolff references his co-authored book with Stephen Resnick, “Class Theory and History: Capitalism and Communism in the USSR” (Routledge, 2002), for detailed analysis.

End of Summary