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Property and the Collapse of the Soviet Union Gregory Harmon San Francisco  2007
Occam’s Razor `Pluralitas non est ponenda sine necessitas.' (Plurality should not be posited without necessity.)
Property manages conflict. Property is about struggle.  http://www.printfinders.com/product/artwork.exe?ArtworkID=56382&thumbs=1&productid=29981
But, while Property manages conflict, it does not eliminate it.
Eliminating property from society will create chaos…
More importantly… no property, no rights.
Whence Property? ,[object Object],[object Object],[object Object]
Two Theories… ,[object Object],[object Object],[object Object],[object Object]
Thomas Hobbes ,[object Object],[object Object]
John Locke ,[object Object],[object Object]
Mutually exclusive analyses… ,[object Object]
Hobbes…The Problem ,[object Object],[object Object]
Hobbes…The Solution ,[object Object],[object Object],[object Object]
John Locke…The Problem ,[object Object],[object Object],[object Object]
Locke…The Solution ,[object Object],[object Object]
Implications ,[object Object],[object Object]
Short version… ,[object Object],[object Object],[object Object]
You have to choose--  one or the other ,[object Object],[object Object],[object Object]
Origins of Property ,[object Object],[object Object],[object Object],[object Object]
So…What IS the answer? ,[object Object],Lion and hyena
An imponderable… ,[object Object],[object Object],[object Object]
Proof ,[object Object],[object Object],[object Object]
But… ,[object Object],[object Object],[object Object],[object Object]
And… ,[object Object]
Hobbes’ Implications… ,[object Object],[object Object],[object Object],[object Object]
Locke’s Implications… ,[object Object],[object Object],[object Object],[object Object]
What’s important.. ,[object Object]
If… ,[object Object]
Interesting… ,[object Object],[object Object]
Some risk…! ,[object Object],[object Object],[object Object]
Not to worry! ,[object Object],[object Object],[object Object],[object Object]
Many objected! ,[object Object],[object Object],[object Object],[object Object],[object Object],Jeremy Bentham, “If property should be…
Enter Lenin… ,[object Object],[object Object]
The Socialist Experiment ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Why? ,[object Object],[object Object],[object Object]
In the beginning was the Word… Lenin and his Bolsheviks seized power from the Russian Provisional government in October 1917. The Tsar had abdicated in February of that year and the successor government had continued its participation in World War I, but was badly outmatched by the Germans on the Eastern Front. Crisis followed crises as shortages and strikes hobbled the productive power of the nation that might support the war effort.  The Bolsheviks ceaselessly agitated for peace and bread.
And the Word was Power Possessed of an almost Nietzschean will to power, Lenin, with significant assistance from the German Imperial Government, managed the coup that displaced the Provisional Government in October, 1917.
Civil War After seizing power the Bolsheviks began a series of talks with the Germans for a separate peace.  These talks ultimately resulted in the Treaty of Brest-Litovsk.  Freed of direct German interference, the Bolsheviks quickly moved to consolidate their power in a Civil War with badly fragmented “Whites.”  Lacking a common program or compelling appeal to match the Bolsheviks, the White forces fought for over two years, but were soundly defeated by the better led Bolsheviks.
Lenin in Power Although he ascended to power with virtually no administrative experience of any sort beyond Party factions, Lenin seized the reins of Russian and Soviet power with determination, competence and zeal.
War Communism The most pressing problem Lenin faced, beyond the mere consolidation of power, was maintaining productivity in the nation while at the same time implementing the planned reforms of communism.  Lenin had every intention of following the Marxian plan of seizing or controlling all the means of production and communication in the nation.
The Bolshevik Program No one can deny that Lenin was as good as his word in his efforts to see communism successfully established in Russia. A number of programs were instituted, principal among these reforms of 1918-1919 were… ,[object Object],[object Object],[object Object],[object Object]
The Bolshevik Goal Lenin’s intention was to create a “Workers’ State” that provided… ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Things didn’t work out quite the way he planned… In a phrase, the idea was to create a “ Workers’ Paradise ”…
The Bolshevik Effect ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],"Moscow does not believe in tears."
The Bolshevik Effect ,[object Object],[object Object],Early 1918/ Dancing to the unheard music of law….Pipes.
Uniform Effects ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The dog that did not  bark in the night… The one and only thing that all Marxist-Leninist regimes did have in common was the abolition of private property. The absent dog could not bark, but its ghost could bite…even kill.
Occam’s Razor…  applied to our problem Locke’s philosophy of social order provides little or no insight into why the socialist experiments would have gone so horribly awry. We are left with a long series of  ad hoc  explanations as to why any specific evil might have beset socialist orders….and virtually no overarching explanation.
Some examples… Anti-modernism latent in Marxian theory Suppression of civil society Bad men, historical legacy, revolutionary enthusiasm Arbitrary arrest and administrative sentencing, rather than trial—including the death penalty Imitation of French Revolutionary behavior, driven by Lenin Administrative action on anonymous denunciation Czarist legacy from Okrana, Lenin’s theories Vast expansion of secret police—Official state policy of terror Czarist legacy Vast expansion of prison system Stalin Re-enserfment of rural population Bad men, Russian cultural legacy from Czarism Reintroduction and vast expansion of the death penalty Explanation Bolshevik Effect
More… Proscription of markets—Mises/Hayek Mafias Proscription of markets—Mises/Hayek Black markets Opportunism Political corruption Cultural legacy Lenin’s theory Political tyranny Stalin’s actions Imposed social uniformity on an unprecedented scale Proscription of markets—Mises/Hayek Collapsed production Proscription of markets—Mises/Hayek Ubiquitous poverty Trotsky/Stalin Extensive adoption of slave labor Explanation Bolshevik Effect
Right? ,[object Object],[object Object],[object Object]
Some attention… ,[object Object],[object Object]
Well… ,[object Object]
A Hobbesian view… The absence of property Suppression of civil society The absence of property Re-enserfment of rural population The absence of property Vast expansion of prison system The absence of property Arbitrary arrest and administrative sentencing, rather than trial—including the death penalty The absence of property Vast expansion of secret police—Official state policy of terror The absence of property Administrative action on anonymous denunciation The absence of property Reintroduction and vast expansion of the death penalty Explanation Bolshevik Effect
And more… The absence of property Mafias The absence of property Black markets The absence of property Political corruption The absence of property Political tyranny The absence of property Imposed social uniformity on an unprecedented scale The absence of property Collapsed production The absence of property Ubiquitous poverty The absence of property Extensive adoption of slave labor Explanation Bolshevik Effect
So…. ,[object Object],[object Object]
Cryptic answer… ,[object Object]
How’s that? ,[object Object],[object Object],[object Object]
Problem ,[object Object],[object Object]
That is… ,[object Object],[object Object]
Locke ,[object Object],[object Object],Except me…. “Natural rights is simple nonsense: natural and imprescriptible rights, rhetorical nonsense — nonsense upon stilts.”  -J. Bentham … ..and Jeremy Bentham... http://www.mwillett.org/Politics/utility.htm
Conventionally thinking… ,[object Object],[object Object],[object Object]
Rights in Bolshevik Russia ,[object Object],[object Object],[object Object]
Property is the key to the “riddle locked in a paradox and set in an enigma” ,[object Object],[object Object]
Suppression of civil society   ,[object Object],[object Object],The long-term hostility of Soviet authorities to what the West calls “civil society” never completely relented, but did hit what was perhaps its apogee during the “Show Trials” in  the mid-1930s.  “ Trials” were staged and consciously managed as an object lesson to the citizenry in just how defenseless they were and just how aggrandizing the State and Party were. When Andrei Vyshinsky, the noted Soviet jurist said… “ Under socialism, the interests of society and the individual are identical…there are no individual interests in Soviet society…”   … he was speaking both a literal and logical truth.  What interests could a person have who holds no legal property?  If the State or Party “owns” all property, only it can have “rights” or interests. Fundamental Rights in the Soviet Union: A Comparative Approach Thomas E. ToweUniversity of Pennsylvania Law Review, Vol. 115, No. 8 (Jun., 1967), pp. 1251-1274 doi:10.2307/3310959 This article consists of 24 page(s).  In this poster, the hand in the foreground holds an indictment against the “counterrevolutionary” Industrial Party. One of the scientists accused of committing sabotage and espionage in the fictitious conspiracy sits in the dock, a puppet controlled by foreign strings. The faces in the background represent the alleged foreign co-conspirators: industrialists, members of the Polish and Romanian military, and French premier Poincaré. http://images.google.com/imgres?imgurl=http://media.hoover.org/images/digest19983_p143-bg.JPG&imgrefurl=http://www.hoover.org/publications/digest/3532831.html&h=556&w=400&sz=50&hl=en&start=1&um=1&tbnid=Iii3mQmtL6uytM:&tbnh=133&tbnw=96&prev=/images%3Fq%3DStalin%2Bshow%2Btrials%2B%26svnum%3D10%26um%3D1%26hl%3Den%26sa%3DG
Reintroduction and vast expansion of the death penalty   ,[object Object],Olson  Logic of Collective Action  The Black Book of Communism After making the elimination of the death penalty a major part of their agitation campaign (Roberts,  Alienation ), the Bolsheviks quickly reinstated it after seizing control of the Russian state. Lenin quickly found that he needed to use force not only against the bourgeoisie, but even against the workers, leading one wag to comment,  “Lenin appears to be the leader of a party that does not exist…”  ( Pipes,  The Russian Revolution ).  Lacking formal incentives of any kind (status or property) the Bolsheviks were compelled to rely upon force.  The death penalty being its most extreme expression.
Vast expansion of  secret police ,[object Object],The use of the security apparatus to ensure the position of the regime and its control of property and “the means of production” led to a heavy reliance on these services from the VCheka under Lenin, to the NKVD under Stalin, and the KGB under later leaders. Bentham provided an eerily precise description of the sort of social control that would be necessitated by any attempt to establish an “equality of possessions” in his  Principles of the Civil Code , (1825) “ The attempt to establish an equality of property must lead to a ceaseless vigilance against every person….” Force
Official state policy of Terror   ,[object Object],Lenin was certainly inspired by the Jacobin example in the French Revolution of what could be accomplished by terror.  But as the range of attempted programs expanded, Lenin was driven to ever greater resort to force.  Leading at one point to his order, of August 11, 1918:  “ 1. Hang (hang without fail  so the people see )  no fewer than one hundred  known kulaks, rich men, bloodsuckers. 2. Publish their names. 3. Take from them all the grain. 4. Designate hostages -- as per yesterday's telegram. Do it in such a way that for hundreds of versts [one verst is about one kilometer] around, people will see, tremble, know, shout:  they are   strangling  and will strangle to death the bloodsucker kulaks. . . . P.S. Find . . . truly hard people." http://www.washingtonpost.com/wp-dyn/content/article/2007/08/09/AR2007080901981.html Felix Dzerhinsky, Beloved Founder of the VCheka Force
Arbitrary arrest and administrative  sentencing, rather than trial ,[object Object],[object Object],[object Object],Stalin understood, as few others (including Lenin) did then or now, just how far force and violence could be pushed.  Stalin comprehended quite exactly just what it meant that in the absence of property, the use of force was the only hope of control.  Stalin understood that his regime depended for its real success on the “security apparatus”—the NKVD.  But he also recognized that this put them in a potentially controlling position over the party and him. His solution, one of astonishing audacity-- even genius, was to terrorize his terrorists—hence “The Great Terror” of the mid-1930s. Conquest—The Great Terror
Vast expansion of prison system   ,[object Object],Stalin… Death to the wreckers… Entering Gulag (a leaf from Eufrosinia Kersnovskaya's notebook) wikipedia Force
Justice, Rights and Civil Trials ,[object Object],[object Object],[object Object],“ Rights” require a social identity and some claim to which those rights refer. Lacking claims, Soviet citizens became—from a legal standpoint—a class of persons similar to that which had once held in the West regarding slaves, women, children, and idiots. The rights asserted in the Stalin Constitution could mean nothing like what they would have in the West, as no one had a basis for their exercise except against the state.  And, since the state was an interested party to any dispute, it was, at best, a grantor of indulgence, but never an obliged co-respondent.  The state had simply to assert its right to trump all claims.  Hence, with no property, no one could be characterized as having anything that might be called “rights” in any recognizable Western form. Soviet and socialist rights were like socialist justice—they were whatever the authorities said they were and were subject to change at their convenience, not any claimants.
Re-enserfment of rural population   ,[object Object],[object Object],The immediate effect of Lenin and the Bolsheviks’ “land reforms” and uncompensated crop seizures in 1918-19 was the collapse of rural production.  The West saved Lenin’s regime by famine relief managed by none other than Herbert Hoover.  The mid-term solution for Lenin was the NEP—limited restoration of property rights to peasants and some city people. Understanding that the regime could not tolerate property rights for the peasants and survive, Stalin decided that Lenin had just not killed enough of them, and determined to kill as many as it took to achieve control.  Solution: Collective farms and re-enserfment. December 27, 1929, six days after celebrating his fiftieth birthday in what Louis Fischer of The Nation called an "orgy of personal glorification," Stalin formally unleashed a new revolution. The country's grain-producing areas were to be collectivized at once; all kulaks were to be liquidated.  "We must smash the kulaks, eliminate them as a class," he said.  Harvest of Sorrow —Robert Conquest Lih, Lars T.  Bread and Authority in Russia, 1914-1921.  Berkeley:  University of California Press,  c1990 Force
Extensive adoption  of slave labor   ,[object Object],[object Object],It was Leon Trotsky who first advocated and then administered the original Soviet Labor camps.  Their creation was the result of both a lack of willing workers for hard or dangerous work and also a means to using otherwise idle man (and woman and child) labor lying unused in prison camps. Noted Trotsky, “ Under capitalism workers must work or die, under socialism they…” Pipes –  Russia under the Bolsheviks Force
Political tyranny   ,[object Object],[object Object],Whatever thoughts Lenin might have had about any type of pluralism—and these were few and restricted to begin with—he quickly abandoned them upon assuming power. It took some time for Lenin to articulate, but he did finally come to see that the Soviet system he established could in fact tolerate no deviation, hence, “ Party is and can only be one voice…” Force
Social uniformity on an unprecedented scale   ,[object Object],[object Object],[object Object],The need of complete mass uniformity was not immediately apparent even to the Bolsheviks.  Only with Stalin’s decision in 1929 to fully bring the nation to heel under his regime and rule did the need for complete social conformity become manifest. Upon the success of the first wave of his commitment to “total force,” Stalin was able to declare,  “ Life is better.  Life is gayer.”  Some disagreed. Czeslaw Milosz,  The Captive Mind
Political corruption   ,[object Object],[object Object],Problems with “careerists” began immediately with the consolidation of party power 1918-21.  Party members immediately began exploiting their positions for personal gain. Various stratagems were tried to suppress the effects of “careerism” and opportunism, but, since even those charged with managing or eliminating the problem were engaged in the activities, reform efforts were never more than half-hearted. So endemic did these problems become that Yuri Andropov’s ascension to power began with a crime ring in which Brezhnev's entire family was involved.
Mafias  ,[object Object],[object Object],Mafias and criminal enterprises addressing “consumer needs” arise in the legal-economic vacuum of any proscription of markets in desired goods. Boris Yeltsin rose to becoming Mayor of Moscow as an effect of his campaigning against the “milk rackets.”  Milk.  Rackets. Over time many local political oligarchies made common cause with both the local security services and criminal gangs as the best solution to having markets in the absence of a government role in managing them. Comrade Criminal
Black markets   ,[object Object],[object Object],Mafias’ economic activities occur within black market environments. Black markets were a feature of Soviet life literally from the first day of the regime’s coming to power. Estimates are that by the end of the Soviet era, something like 50% of economic all activity was occurring in the “left-handed” markets, as they were ironically called. As British thinker John Gray noted, the absence of a government role in the market economy led to the Soviet Union being a “Wild West” world, with an “ economic state of nature within….
Collapsed production   ,[object Object],[object Object],[object Object],Problems of production and productivity plagued the Soviet leadership from the very beginning—with the first famines occurring in 1919-21. At the same time as rural productivity collapsed, so did urban; only to be restored by the NEP program in 1922-25. Stalin’s “All force, all the time” method does seem to have worked for a very brief period, with the German Invasion strongly motivating worker productivity in the early ’40s. But, as Martin Malia points out in  The Soviet Tragedy , the economic survival of the Soviet Union principally depended on key, episodic infusions of capital from the West. But even these efforts ultimately failed as Soviet non-productivity eventually led to the consumption of the entire capital base of the nation and such profound bankruptcy that in 1991 the Party did not even try to maintain power—nothing was left but the shell of a nation.
Ubiquitous poverty   ,[object Object],[object Object],[object Object],There can be little question that the Soviet obsession with national security led to over-investing in military goods and services. Soviet production data are, of course, virtually useless due to alteration.  But, there can be little doubt that average income in the Soviet Union, particularly toward the end of the era, had fallen well below some of the worst third-world standards—they were only saved from active ruin by black markets
Why? ,[object Object]
The Logic of Property See Next Slideshow.
Just a thought…
 
 
 
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Property and the Collapse of the Soviet Union

  • 1. Property and the Collapse of the Soviet Union Gregory Harmon San Francisco 2007
  • 2. Occam’s Razor `Pluralitas non est ponenda sine necessitas.' (Plurality should not be posited without necessity.)
  • 3. Property manages conflict. Property is about struggle. http://www.printfinders.com/product/artwork.exe?ArtworkID=56382&thumbs=1&productid=29981
  • 4. But, while Property manages conflict, it does not eliminate it.
  • 5. Eliminating property from society will create chaos…
  • 6. More importantly… no property, no rights.
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  • 36. In the beginning was the Word… Lenin and his Bolsheviks seized power from the Russian Provisional government in October 1917. The Tsar had abdicated in February of that year and the successor government had continued its participation in World War I, but was badly outmatched by the Germans on the Eastern Front. Crisis followed crises as shortages and strikes hobbled the productive power of the nation that might support the war effort. The Bolsheviks ceaselessly agitated for peace and bread.
  • 37. And the Word was Power Possessed of an almost Nietzschean will to power, Lenin, with significant assistance from the German Imperial Government, managed the coup that displaced the Provisional Government in October, 1917.
  • 38. Civil War After seizing power the Bolsheviks began a series of talks with the Germans for a separate peace. These talks ultimately resulted in the Treaty of Brest-Litovsk. Freed of direct German interference, the Bolsheviks quickly moved to consolidate their power in a Civil War with badly fragmented “Whites.” Lacking a common program or compelling appeal to match the Bolsheviks, the White forces fought for over two years, but were soundly defeated by the better led Bolsheviks.
  • 39. Lenin in Power Although he ascended to power with virtually no administrative experience of any sort beyond Party factions, Lenin seized the reins of Russian and Soviet power with determination, competence and zeal.
  • 40. War Communism The most pressing problem Lenin faced, beyond the mere consolidation of power, was maintaining productivity in the nation while at the same time implementing the planned reforms of communism. Lenin had every intention of following the Marxian plan of seizing or controlling all the means of production and communication in the nation.
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  • 46. The dog that did not bark in the night… The one and only thing that all Marxist-Leninist regimes did have in common was the abolition of private property. The absent dog could not bark, but its ghost could bite…even kill.
  • 47. Occam’s Razor… applied to our problem Locke’s philosophy of social order provides little or no insight into why the socialist experiments would have gone so horribly awry. We are left with a long series of ad hoc explanations as to why any specific evil might have beset socialist orders….and virtually no overarching explanation.
  • 48. Some examples… Anti-modernism latent in Marxian theory Suppression of civil society Bad men, historical legacy, revolutionary enthusiasm Arbitrary arrest and administrative sentencing, rather than trial—including the death penalty Imitation of French Revolutionary behavior, driven by Lenin Administrative action on anonymous denunciation Czarist legacy from Okrana, Lenin’s theories Vast expansion of secret police—Official state policy of terror Czarist legacy Vast expansion of prison system Stalin Re-enserfment of rural population Bad men, Russian cultural legacy from Czarism Reintroduction and vast expansion of the death penalty Explanation Bolshevik Effect
  • 49. More… Proscription of markets—Mises/Hayek Mafias Proscription of markets—Mises/Hayek Black markets Opportunism Political corruption Cultural legacy Lenin’s theory Political tyranny Stalin’s actions Imposed social uniformity on an unprecedented scale Proscription of markets—Mises/Hayek Collapsed production Proscription of markets—Mises/Hayek Ubiquitous poverty Trotsky/Stalin Extensive adoption of slave labor Explanation Bolshevik Effect
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  • 53. A Hobbesian view… The absence of property Suppression of civil society The absence of property Re-enserfment of rural population The absence of property Vast expansion of prison system The absence of property Arbitrary arrest and administrative sentencing, rather than trial—including the death penalty The absence of property Vast expansion of secret police—Official state policy of terror The absence of property Administrative action on anonymous denunciation The absence of property Reintroduction and vast expansion of the death penalty Explanation Bolshevik Effect
  • 54. And more… The absence of property Mafias The absence of property Black markets The absence of property Political corruption The absence of property Political tyranny The absence of property Imposed social uniformity on an unprecedented scale The absence of property Collapsed production The absence of property Ubiquitous poverty The absence of property Extensive adoption of slave labor Explanation Bolshevik Effect
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  • 81. The Logic of Property See Next Slideshow.
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