Hoover senior fellow Sir Niall Ferguson draws striking parallels between the current state of the United States and the chronic issues that plagued the Soviet Union.
We're All Soviets Now
The witty phrase “late Soviet America” was coined by the Princeton historian Harold James back in 2020. It has only become more apposite since then as the cold war we’re in—the second one—heats up.
I first pointed out that we’re in Cold War II back in 2018. In articles for The New York Times and National Review, I tried to show how the People’s Republic of China now occupies the space vacated by the Soviet Union when it collapsed in 1991.
This view is less controversial now than it was then. China is clearly not only an ideological rival, firmly committed to Marxism-Leninism and one-party rule. It’s also a technological competitor—the only one the U.S. confronts in fields such as artificial intelligence and quantum computing. It’s a military rival, with a navy that is already larger than ours and a nuclear arsenal that is catching up fast. And it’s a geopolitical rival, asserting itself not only in the Indo-Pacific but also through proxies in Eastern Europe and elsewhere.
But it only recently struck me that in this new Cold War, we—and not the Chinese—might be the Soviets. It’s a bit like that moment when the British comedians David Mitchell and Robert Webb, playing Waffen-SS officers toward the end of World War II, ask the immortal question: “Are we the baddies?”
I imagine two American sailors asking themselves one day—perhaps as their aircraft carrier is sinking beneath their feet somewhere near the Taiwan Strait: Are we the Soviets?
Yes, I know what you are going to say.
There is a world of difference between the dysfunctional planned economy that Stalin built and bequeathed his heirs, which collapsed as soon as Mikhail Gorbachev tried to reform it, and the dynamic market economy that we Americans take pride in.
The Soviet system squandered resources and all but guaranteed shortages of consumer goods. The Soviet healthcare system was crippled by dilapidated hospitals and chronic shortages of equipment. There was grinding poverty, hunger, and child labor.
In America today, such conditions exist only in the bottom quintile of the economic distribution—though the extent to which they do exist is truly appalling. Infant mortality in the late Soviet Union was around 25 per 1,000. The figure for the U.S. in 2021 was 5.4, but for single mothers in the Mississippi Delta or Appalachia it is 13 per 1,000.
The comparison to the Soviet Union, you might argue, is nevertheless risible.
Take a closer look.
A chronic “soft budget constraint” in the public sector, which was a key weakness of the Soviet system? I see a version of that in the U.S. deficits forecast by the Congressional Budget Office to exceed 5 percent of GDP for the foreseeable future, and to rise inexorably to 8.5 percent by 2054. The insertion of the central government into the investment decision-making process? I see that too, despite the hype around the Biden administration’s “industrial policy.”
Economists keep promising us a productivity miracle from information technology, most recently AI. But the annual average growth rate of productivity in the U.S. nonfarm business sector has been stuck at just 1.5 percent since 2007, only marginally better than the dismal years 1973–1980.
The U.S. economy might be the envy of the rest of the world today, but recall how American experts overrated the Soviet economy in the 1970s and 1980s.
And yet, you insist, the Soviet Union was a sick man more than it was a superpower, whereas the United States has no equal in the realm of military technology and firepower.
Actually, no.
We have a military that is simultaneously expensive and unequal to the tasks it confronts, as Senator Roger Wicker’s newly published report makes clear. As I read Wicker’s report—and I recommend you do the same—I kept thinking of what successive Soviet leaders said until the bitter end: that the Red Army was the biggest and therefore most lethal military in the world.
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https://www.thefp.com/p/were-all-soviets-now