"The collapse of the Soviet Union should have come as no surprise to anyone who understands economics, especially Austrian economics." - Robert WenzelRobert Wenzel, through his website EconomicPolicyJournal.com is fast becoming one of my most relied upon sources for serious analysis of not only economics, but also politics, current events and history. Two weeks ago we posted a fascinating interview Wenzel conducted with Robert Morrow and Judy Morris about the little discussed 1967 Israeli attack on the U.S.S. Liberty.And now here today, we have a history lesson from Wenzel himself.  Last week he delivered the Henry Hazlitt Keynote Lecture at the Austrian Economics Research Conference.  This speech is absolutely compelling and a must watch for anyone interested in history or libertarianism.  It is clear that an extraordinary amount of research went into this speech, and Wenzel delivers it to the audience in his usual no-nonsense-sprinkled-with-sarcasm manner.The main thesis of this speech is that the official reason we hear for the collapse of the Soviet Union - the idea that Ronald Reagan's determined strength to build up the U.S. military had forced the Soviet Union to try to keep up and ushered in their economic bankruptcy in their attempt to keep up - is a complete myth.This myth has been used to justify the huge military expenditures that we see to this day.  This buildup has since enabled the United States to embark on all sorts of wars against smaller nations. The neoconservatives wanted the ability to quickly and decisively crush smaller nations that it found troublesome. This huge military was never used against the Soviet Union, but smaller countries such as Grenada, Panama and Iraq.So what was the real reason for the collapse of the Soviet Union? The answer can be summed up in one word: socialism.Wenzel mentions Ludwig von Mises' analysis of why socialism does not work. According to Von Mises, "precisely because there are no free market prices in a socialist economy, that rational economic activity is impossible in a socialist commonwealth."It's not surprising that political leaders in the U.S. would both downplay the effects of socialist policies while at the same time  promoting the idea that a strong military was necessary to defeat the Soviet Union. Whether it's a Democrat or Republican proposal, all attempts at intervention in the economy are based on central planning and attempt to undermine the free market. It is the free market that contains the pricing mechanisms which are essential for an economy to function. The Soviet Union is one of the most extreme examples of this in history of the world, and it's effects were devastating.How could U.S. leaders justify any of their domestic policies today while reminding us of the failures of socialist policies in the Soviet Union? But a tale of a strong Republican President staring down the Soviets and a massive military buildup leading to the defeat of the evil Commies? Now that one works!"But if socialism is so bad, why did it take 70 years for the Soviet Union to finally collapse?" a curious Statist might ask.This is what Wenzel breaks down by guiding us through a detailed history of the Soviet Union. Briefly, there were four main factors:

1. The Reserve Fund - This refers to the wealth of the nation's private sector that the Soviet government was able to confiscate and sustain itself on.
2. Outside Assistance - Foreign aid (including from the United States itself!)
3. Black Markets - The only free market in a command economy is the black market that develops underground as a necessity for attaining products needed for daily living.
4. Mass murder of tens of millions - Bad socialist policies aside, murdering a few million people is historically a pretty decent way of preventing a mass revolt from the populace.

Take it from me, you won't regret taking the time to watch this excellent speech. Arm yourself with knowledge to use on the battlefield of ideas.Receive access to ALL of our EXCLUSIVE bonus audio content – including “Conspiracy Corner”, “Degenerate Gamblers” and the “League of Liberty Podcast” by joining the Lions of Liberty Pride and supporting us on Patreon!And if Bob keeps this up, we might have to start a new feature here...Wednesdays with Wenzel anyone?