EASTERN EUROPE: Now, Credit-Card Communism

First there was "goulash Communism"—the term coined in the early 1960s to describe Nikita Khrushchev's insistence that Red economies satisfy consumer needs instead of concentrating only on the development of heavy industry. Now the Soviet bloc is following an even more heretical strategy that might be called credit-card Communism—the customers in this case being governments rather than individuals. Totally violating Marxist prejudices, the Soviet Union and its six economic allies in Eastern Europe* are trying to modernize their antiquated economies by borrowing heavily from their supposed class enemies, the capitalists of the...

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