The Soviet Union's military equipment (e.g., MiG fighter jets) was near the technology frontier while its consumer goods like washing machines were terrible, because the military sector faced genuine competitive pressure to keep up with US technology while the consumer sector did not—demonstrating that competition, not central direction, drives discovery and productivity.

causalpending

Speaker

Paul Romer

Evidence Quote

where was the Soviet Union closest to the technology frontier? It was actually in military equipment... why was that good and their washing machines were terrible? Well, the the MiGs had to compete

Source

Paul Romer on Growth 8/27/2007EconTalk
Created: 6/16/2026, 2:38:24 PM

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