How The Soviet Underground Economy Actually Works

Описание: If you’ve ever wondered about what kind of society where the underground black market thrives best, then the answer would probably be the Soviet Union.

The underground market was an integral part of daily life for people living in socialist countries. In fact, it is what enables the Soviet Union to last for as long as 70 years, and the underground economies in these countries are sometimes larger than the real economy in capitalist countries.

It is estimated that the annual Soviet black market transaction amounts to $145 billion, with around 83% of people using the black market regularly to buy daily necessities and other goods, and around 20 million people were working either full-time or part-time to provide goods and services in the black market.

But why did the Soviet black market get so big in the first place?

Sources:
http://public.econ.duke.edu/Papers//T... Berkeley-Duke 38 papers on USSR second economy
https://wp.towson.edu/iajournal/artic... Soviet black market under Gorbachev - Brian Walsh
The Russian Underground Economy in Transition - Michael Alexeev, Indiana University (1995)
https://www.ucis.pitt.edu/nceeer/1986... The Second Economy In Consumer Goods and Services In The USSR - Dennis O'Hearn, UC Berkeley (1986)

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#Soviet Union #Finance #Doverhill

about economics explained, about Finance and how money works, on Soviet underground ecoonomy and how it works, This is an economics/finance video