Second Economy Quotes

“By the ‘second economy’ is usually understood that part of the economy resulting from private production and/or (re)distribution. Attempts were sometimes made to abolish it (e.g. the USSR in 1918–21 and 1930; China in 1958–9 and the Cultural Revolution; and Kampuchea in the late 1970s). The results of such attempts were always very adverse for popular welfare, and were always ultimately abandoned. Even when parts of this sector (e.g. the private plots of collective farmers) were legalised, other parts often remained criminalised. The extent of criminalisation varied over time and between countries. The long-run tendency was to reduce the area of criminalisation. The second economy provided goods, services and income for the population which the state sector was unable, or unwilling, to provide.”
― Michael Ellman, Socialist Planning