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  Monday  December 31  2007    04: 53 PM

some adjustments coming

A Christmas Eve Story
by Jim Kunstler


Dmitry Orlov's publisher sent me the galley proof to get a blurb for the dust-jacket, and I'll furnish one in short order because Reinventing Collapse is an exceptionally clear, authoritative, witty, and original view of our prospects. The thesis is that the United States is headed for troubles as broad and deep as the ones that brought down the Soviet system in Russia, though we will get there via a somewhat different route. Orlov has been in the privileged position of living under both systems at critical times, and the parallels are striking, but the differences even more so.

The Soviet experience was a collapse of consensual reality as much as of economy. Nobody could continue to support the credibility of a one-party, centrally-planned, "command" economy best represented by the joke: "We pretend to work and they pretend to pay us." An economy in which nobody had any real stake other than ideological finally ground ignominiously to a halt. Once the state surrendered its authority, the society was stripped of assets. The social safety net dissolved. A lot of people on the margins slipped through the cracks and died. Eventually, the Russian economy (and government) reorganized on a different basis -- largely because its remaining oil resources and annual production exceed its domestic consumption. So, this reorganized new oil-exporting state, with its shocking poles of extreme wealth and poverty, will go on for a while until the oil is gone, and then it will face more transformations.

The comparison with the American situation is chilling. For all its gross faults, Soviet Russia was ironically better prepared for economic collapse and political turmoil than we will be. For one thing, all housing there was owned by the state, and allocated under bare nominal rents, so when the economy collapsed, people just stayed in their apartments. Nobody got evicted. There was scant private car ownership in pre-1990 Russia, so gasoline allocation problems did not paralyze movement. Train service was excellent and cheap, and the cities all had a rich matrix of underground metros, on-street electric trams, and trolley-buses, which continued to run even when central authority flickered out. There was no suburban sprawl to strand and isolate people (in homes owned by banks, that can be taken away after the third monthly failure to make a mortgage payment). Official Soviet agriculture was such a fiasco for half a century that the Soviet people were long-conditioned to provide for themselves. For decades, 90 percent of the food was coming from tiny household gardens, wherever it was possible to grow stuff. When America's just-in-time supermarket resupply system wobbles, and the Cheez Doodles disappear from the WalMart shelves, few Americans will have a Plan B.

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