Economics

Question 1

Deleveraging

Answer 1

Question 2

Soviet Economics 5 problems

Answer 2

1 Farm incentives undermined by prices fixed
2 Farm output undermined by fixed pay
3 Factory output incent. less desirable than manipulating outputs hence future quotas
4 Innovation less desirable than output manip.
5 feudalist Extractitive economy continued enf. by productivity punishments

Question 3

Creative destruction
Name of author

Answer 3

The opening up of new markets and the organizational development from the craft shop and factory to such concerns as US Steel illustrate the process of industrial mutation that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one … [The process] must be seen in its role in the perennial gale of creative destruction; it cannot be understood on the hypothesis that there is a perennial lull.

— Joseph Schumpeter, Capitalism, Socialism and Democracy, 1942
Impediments to Creative Destruction
Edit
Politicians often impose impediments to the forces of creative destruction by regulating entry and exit rules that make it difficult for churning to take place. In a series of papers Andrei Shleifer and Simeon Djankov illustrate the effects of such regulation on slowing down competition and innovation.

Question 4

Communism problems 4

Answer 4

1 everyone must have job
2 Loss of individuality = loss of accountability
3 Mao: at no time/no circum should a C place interests first - no empiricism/could be said in any society
4. Reward paradox- no indiv reward = no incentive, if reward = individualism promoted.

Question 5

Shaoqi titles 2

Answer 5

1 Why communists must undertake self cultivation
2 the self cultivation of communists