Paul Krugman, a renowned economist, has made several claims about why the Soviet economic growth would slow down. Here are the primary reasons according to him:

1. Diminishing Returns: Krugman argued that the Soviet Union had been growing primarily through extensive growth, i.e., by adding more inputs like labor and capital. However, this kind of growth inevitably faces diminishing returns, meaning that each additional unit of input results in less and less output. This would slow down the growth rate.

2. Lack of Innovation: Krugman also pointed out that the Soviet Union was not innovative enough. The centrally planned economy did not encourage innovation and entrepreneurship, which are key drivers of economic growth in the long run.

3. Inefficiency: The

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Paul Krugman, a renowned economist, has made several claims about why the Soviet economic growth would slow down. Here are the primary reasons according to him:

1. Diminishing Returns: Krugman argued that the Soviet Union had been growing primarily through extensive growth, i.e., by adding more inputs like labor and capital. However, this kind of growth inevitably faces diminishing returns, meaning that each additional unit of input results in less and less output. This would slow down the growth rate.

2. Lack of Innovation: Krugman also pointed out that the Soviet Union was not innovative enough. The centrally planned economy did not encourage innovation and entrepreneurship, which are key drivers of economic growth in the long run.

3. Inefficiency: The

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Paul Krugman, a renowned economist, has made several claims about why the Soviet economic growth would slow down. Here are the primary reasons according to him:

1. Diminishing Returns: Krugman argued that the Soviet Union had been growing primarily through extensive growth, i.e., by adding more inputs like labor and capital. However, this kind of growth inevitably faces diminishing returns, meaning that each additional unit of input results in less and less output. This would slow down the growth rate.

2. Lack of Innovation: Krugman also pointed out that the Soviet Union was not innovative enough. The centrally planned economy did not encourage innovation and entrepreneurship, which are key drivers of economic growth in the long run.

3. Inefficiency: The

Following Krugman's claims, the Soviet economic growth would slow down primarily because of

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Following Krugman's claims, the Soviet economic growth would slow down primarily because of

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