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Example text

Carl Menger explained this relationship in terms of the connection between "lower order" and "higher order" goods within the production process, and the notion that the value of higher order goods is imputed from the value of the lower order goods they are used to produce. 87 In this manner capital goods (goods of the higher order) are shuffled and reshuffled within the production process to meet individual 26 The Political Economy of Soviet Socialism demands for consumer goods (goods of the lower order).

Nove has most recently reiterated this point in The Economics of Feasible Socialism. He argues that Marx's economic analysis is confined to capitalism and does not extend to the economic problems facing a socialist economy. "Marxist economics," he concludes, "is either irrelevant or misleading, in respect of the problems that must be faced by any socialist economy which could exist. "1l7 While this statement contains a degree of truth, the failure to understand the policies of war communism, NEP, and the first five-year plan in light of the Marxian theory of socialism distorts the significance of the Soviet experience.

H. Carr reiterated Dobb' s interpretation of the war-emergency nature of war communism. Even though Carr's narrative is ambivalent toward the ideology versus emergency explanation of war communism, he is probably more responsible than anyone else for promoting the "war communism as expedient" view. The Bolsheviks found themselves in a theoretical and practical paradox, Carr argues. They rose to political power smoothly because of the economic backwardness of Russia; opposition came solely from the remnants of feudalism and from elements of underdeveloped capitalism.

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2011 Schweser Notes CFA 1 Book 1 by Kaplan Inc.


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