Milford chronicle., 1957-03-22
RUSSIA'S ECONOMY

I'VE are now seeing the flfSC OF long
series of upheavals generated by the inter-
nal contradictions of the Soviet economy. For
Soviet Communism has turned out to be a
kind of capitalism-a kind that won't work !"
That is the substance, developed in great de-
tail, of an article by Gilbert Burck and San
ford S. Parker in the February issue of For
tune.
The writers begin with striking anal
ogy-"The Kremlin today is like reckless
corporate board of directors that has become
obscessed with the ambition of making its
company the biggest in the world; having
expanded plant and equipment too fast, it
must now adjust its ambitions to reality"
Every Soviet effort has been dedicated to
overtaking and surprising the United States
in military and economic fields. The process
has been one of forced, not normal or logical
growth. RusSia's very real achievements, in
other words, have been obtained by such iron
handed stratagems as collectivizing the
farms, forcing peasants into the factories,
and holding production of consumer goods
to minimum levels
However, Messrs. Burck and Parker
state, the nation can no longer grow by the
same devices. Little if any more manpower
can be taken from agriculture to serve indus
try. Population growths has been retarded
by famineS, war losses and deaths in slave
labor camps. So increased industrial pro-
duction can come for the most part, only by
increasing productivity per man-hOur = a
fact which the latest Five Year Plan recog-
nizes. But, as the writer's put it, there is a
big dilemma here: Because popular resent
ment is actually beginning to affect produc-
ton, the Kremlin must now make real con-
cesSionS to consumers. But if the Kremlin
makes such concessions, it cannot keep pace
with, much less surpasse the military and
economic progress of the u. S.
The Soviet labor force is half again as
large as ours-yet produces only third as
much. The way the labor forces are divided
is also highly significant. Both nations en-
plOy about the same number of people in gov
ernment But Soviet agriculture employs
about seven times as many workers as we do,
and Soviet industry 10 per cent more. On
the other hand, Soviet workers in the trades
and services number less than a third of the
u. S. iottal-which in itself clearly shows why
Soviet living standards are so low.
In no field of consequence does Soviet
production rival ours, even though she has
managed to greatly increase her industrial
output over the years Russia produces less
than half as much steel; about a third as
much energy, and only tiny number of au-
tomobiles, comparatively speaking. Her farm
output as whole is but half of ours, and
meat production but quarter. AS for Rus
sian consumers. this observation is made:
Never in modern history has big economy
vouchsafed so few crubs to so many consum~
erS.''
How can the Kremlin relieve its tremend-
Gus pressures? 1t can continue its emphasis
on heavy industry-but that, as the authors
say, g. would require new breakdown on
the people and might end in violent revolu-
tion" Or it could place the emphasis on con-
sumers goods -"Yet real shift toward con-
sumers goods, because it would end the myth
of the necessity of absolutism, would pave
The way for the gradual downgrading and
disintegration of the Communist party die
tatorship."
In other words, the Kremlin hasn't much
choice. Matters might reach state of des-
peration which would result in World War
III. However, these writers believe the cri-
sis is more likely 8. to spawn long per-
iod of stopgap measures ad hoe policy
changes, and Kremlin reshufflings. These
might, over period of years, effect a SUBJ
stantial and primarily peaceful change in the
Soviet system; or they might whet the peo-
pies appetite for faster and greater change
and so lead to coups d'etat and popular up
risings."
CUTTING THE BUDGET
The proposed S71.8 billion federal budget
lox.c IN hic4OY I,afr