Abstract

Peter Boettke's Why Perestroika Failed offers an overly mechanistic explanation for the collapse of the Soviet economy, derived from Mises's theory of the economic impossibility of socialism. Arguing that the economic system was doomed to fail does not explain why it fell precisely when it did. Thus, Boettke underestimates the extent to which elements of the Communist nomenklatura themselves came to realize that their interests could be served by ditching the command economy. Such an emphasis on the role of human agents is surely compatible with a Hayekian approach