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Small-Scale Question Sunday for December 10, 2023

Do you have a dumb question that you're kind of embarrassed to ask in the main thread? Is there something you're just not sure about?

This is your opportunity to ask questions. No question too simple or too silly.

Culture war topics are accepted, and proposals for a better intro post are appreciated.

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How do you figure? Looking at the graph, oil was at ca 80 in the mid 70s and then crushed all the way down to ca 45 in the mid 80s. I guess you can argue that it can't be the only factor since it was lower beforehand, but it seems reasonable that the USSR was at least partially kept afloat by high crude prices in the 70s and 80s until Reagan pulled the rug on that.

You need to explain why that revenue was so critical in the 80s, when it had not been earlier. Plus, this indicates that total exports were pretty normal even as oil prices dropped (though I cant tell if the data is adjusted for inflation, and exchange rates might have fluctuated).

Finally, did Reagan convince them to "pump like crazy" or merely to return to normal levels of production

PS: Re oil, stronger argument seems to me is that the regime used oil revenues to provide income to various insiders (I am pretty sure that Gazprom was a govt agency) and that reduced oil revenue made it harder to ]buy off those who became increasingly discontented due to other factors](https://en.wikipedia.org/wiki/Selectorate_theory).

Hmm, I agree that based on the figure of actual oil production, it seems questionable to claim that the Saudis "pumped like crazy", independent of whether Reagan talked them into it or anybody else.

Still, in terms of dependence on oil prices, it's widely accepted afaik that the USSR financed large parts of its own post-war economy by cannibalizing formerly better developed eastern european satellite states such as eastern germany and czechoslovakia. It's at least not only what I was taught in school, but also what contemporaries I personally know have told me. This obviously is not sustainable long-term, but high resource income can prop up a dysfunctional state indefinitely, see Venezuela. It's not a question of necessity, it means that in an alternative world with low crude oil the 70s might have seen a generally worse economy, increasing cannibalization leading to an even worse economy later on, and thus higher chances of earlier riots, protests and revolutions.

Selectorate ....

You will like an anecdote I have from a contemporary in the DDR who worked in military intelligence. He was a car mechanic/engineer and his main task was procuring, checking & maintaining vehicles both for general use by his colleagues and for various important people. One time, he officially was tasked with organizing multiple high-value cars for long-term use. Inofficially, this was more or less a party thrown to bribe insiders with hard-to-get western cars as the final touch. According to him, he was even offered to keep one of the cars for himself because he did such a good job getting them, but declined since he saw it as a betrayal of soviet principles (he is still a true believer). Obviously I have no way whatsoever to check this for myself, let alone prove it to you. But FWIW, I believe him; He never seemed to me like the type to make this up. And according to his kids he has have never owned any car but his Wartburg.

Ultimately I agree, though I think every system needs to "pay off" different interest groups to keep afloat one way or another, so I don't see a big difference between "high crude oil prices propped up the system" or "high crude oil prices allowed the system to buy off an interest group that would otherwise become unhappy".

so I don't see a big difference between "high crude oil prices propped up the system" or "high crude oil prices allowed the system to buy off an interest group that would otherwise become unhappy".

Oh. I was referring to the original claim that "Oil exports were the primary source of the USSRs hard currency and allowed it to import things." I think the data re overall exports tends to undermine that specific argument. However, if the regime relied on oil revenues to buy off necessary supporters (or, more likely, gave those supporters control of the oil industry, as is often the case), oil price drops might have undermined the regime even if it did not undermine the ability to import goods.