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The only certain fact about Russian affairs under the Soviet regime with regard to which all people agree is: that the standard of living of the Russian masses is much lower than [...] the paragon of capitalism, the United States of America. If we were to regard the Soviet regime as an experiment, we would have to say that the experiment has clearly demonstrated the superiority of capitalism and the inferiority of socialism.

Ludwig von Mises#23

CapitalismSocialismEconomy

About this quote

What does it mean?
Soviet living standards being lower than the US proves capitalism superior according to the author.
In plain terms
Russians are poorer than Americans, showing capitalism works better than socialism.
What can you take from it?
Comparing living standards can judge economic systems.

Where it applies

  • economic policy debate
  • historical analysis
  • system evaluation

Putting it to work

  • compare GDP
  • analyze household income
  • evaluate regime outcomes

Questions to consider

  • Is income the only measure of success?
  • What else defines an economic system?

Another view

Living standards depend on many factors beyond economic system type.

More from Ludwig von Mises

  1. There were nowhere more docile disciples of Lenin, Trotsky and Stalin than the Nazis were.

    Permalink to quote #22
  2. Government is the only institution that can take a perfectly good piece of paper, print some noble words on it, and make it perfectly worthless.

    Permalink to quote #24
  3. It is a fact that Mussolini entered the scene of world politics as an ally of the democracies, while Lenin entered it as a virtual ally of imperial Germany.

    Permalink to quote #21

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