Stalin's Russia and Maoist China are often considered "totalitarian". But in one insufficiently researched area they followed entirely different policies.
From the few data that we have, we know that Stalin's USSR (say, around 1935) had a fairly high degree of inequality.
Massive use of Taylorism & piecework rewards led to large wage differences. Stakhanovists were paid highly, so much so that Trotsky thought they might create a "workers' aristocracy". Govt and party top cadres had substantial perks. (Inequality decreased significantly after 1953)
But Maoist China went the other way: equalization of wages, abhorrence of material incentives. This was the very opposite from the practice of "payment according to output" & material incentive which is the essence of Taylorism.
The two communist systems thus ideologically favored two entirely opposite principles in pay: "according to work" or "equality for all".
See my post:
branko2f7.substack.com/p/what-is-the-…

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More from @BrankoMilan

Feb 6
"But the struggle between the first set of billionaires, many of whom Westerners, who enriched themselves under Yeltsin, and were unhappy from being excluded from the next division of the spoils, and the second set of billionaires, the Putin’s “team”,
continues to this day, not only in Russia but across the world. Many of the first group have used millions that they have stolen from Russia to set a number of political think-tanks whose main role is to fight Putin,
under the pretext of transparency and democracy, but in reality in the hope that they would again be able to exploit the mineral resources. Putin’s team in order to stay in power applied the same rules:
Read 4 tweets
Feb 3
Some slides from today's discussion on China at Kiel Institute for the World Economy.
The Chinese elite (top 5%) moved from being associated with the government to being composed mostly of businessmen and professionals.
Educational level of the elite increased substantially: from only 12% with university education in 1988 to 44% in 2013.
The share of CPC members among the top 5% and the top 1% decreased.
Read 5 tweets
Jan 24
The problem is as follows. Since the end of communism, Western envoys in EE have behaved like Roman governors in conquered lands. In normal diplomacy, foreign representatives do not comment on domestic devt's. The French ambassador in the US does not comment on Georgia elections.
The change in behavior is due also to EEuropeans who have accepted this subaltern position of limited sovereignty. In part, because they were used to it, in part b/c they were at loggerhead with others around them, in part b/c they were not sufficiently aware of it.
And many countries have become members of the EU which obviously limits their domestic sovereignty. So the line btw domestic & foreign affairs became blurred.
But this attitude is against the rules of international conduct and formal equality of states.
Read 4 tweets
Jan 21
The topic called "income distribution" is used for very different things.
First, Blinder-type neoclassical models with agents who know their entire future, incl. their wages, discount rates, preferences etc. With zero real data. No social classes, no politics. No nothing.
Second, Staffian and Kaldorian abstract functional distributions which are just a wage/profit ratios in a theoretical model. With no real data, except as illustrations. Very vague relation to reality (as No 1 models).
Third, purely empirical exercises a la Atkinson that have lots of data but no underlying economic or political story (no parties, strikes, wars, technological change).
Read 5 tweets
Jan 14
In the past couple of days I reread this book (see pic) on the Soviet's side of the Cold War (up to 1964). I would strongly recommend it b/c it shows how things are similar (geopolitics did not change much).
US was then, as now, in a huge strategic advantage, USSR was always trying to catch up and (most important) to be taken seriously, as an equal partner.
In doing so, it precipitated crises like Berlin & Cuba. This was esp. the case w/ Khrushchev. Stalin was more cautious.
US policy is one of slow and deliberate increase of power, Soviet is a policy of stop-and-go, much more dependent on the leadership.
The authors in the concluding chapter single out absence of LT view on the Soviet side & of great personalities.
Read 4 tweets
Jan 10
I have tweeted several times my China book reviews and I cannot find them all (without some serious search).

Here are some without *any* order. (for @Noahpinion)

Hucker, Limits to autocracy
branko2f7.substack.com/p/limits-to-au…
Arrighi, Adam Smith in Beijing
branko2f7.substack.com/p/will-bourgeo…
Weber, How China Escaped Shock Therapy
branko2f7.substack.com/p/how-china-es…
Read 15 tweets

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