78-06-B7

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Soviet Consumer

Transcript For years the leaders of the Soviet Union have boasted that in their state-run economy there can be no inflation. The rising prices in the western world, say the Soviets, are caused by greedy capitalists extorting the last pound of flesh from helpless consumers. On March 1, however, a funny thing happened on the workers' way to paradise. Gasoline prices doubled. Drivers arrived at gas pumps to find yesterday's 43¢ a gallon gas increased to 83¢ a gallon. Premium grade doubled to $1.10 a gallon. The State Committee on Prices, however, had a ready explanation. According to the chairman of that august body of price controllers, Nikolai Glushkov, the price increases came as a result of a popular demand for higher prices! Thousands of Soviet drivers, he reported, had complained that Soviet gasoline prices were too low compared to gas prices elsewhere in the world! It was observed, however, that popular outpourings of support for Mr. Glushkov's action were---to put it mildly--subdued, And under questioning from foreign newsmen, Mr. Glushkov reluctantly admitted that the costs of finding, drilling and piping Siberian oil had gone up, and also that prices of imports had climbed steadily. It is little wonder that Soviet motorists are outraged at the price doubling for motor fuel, It is hard enough becoming a car owner in the first place. The average Soviet worker earns $221 a month, essentially free of deductions. The only car he can buy is a Zhiguli (ZHUH-GOLI)--which is a Fiat manufactured in Russia. This Russian Fiat is priced at $10,000. Even so, the waiting is more than a year long . And once he gets his $10,000 Fiat, he must face the possibility of gas prices doubling overnight through another sort of Fiat-- a Fiat of the economic czars in Moscow. By contrast, the average American manufacturing worker with a family of four has about $700 a month to spend after social security and income tax withholding. He can walk into a showroom and buy a Fiat or any number of other cars for less than $4,000. He has his choice of Pintos, Gremlins, Dashers, Rabbits, Chevettes, Horizons and many more. Any of these cars can be purchased--no waiting--for not more than six months take-home pay by the average American industrial worker. His Russian counterpart must give 45 months pay to buy as good a car. He has his choice of one brand. Nor do Russian workers have the opportunity to sit down over a cup of coffee to bemoan their plight. Coffee was unavailable to Russian consumers for several months last year. Now it's back--for only $12.73 a pound. Soviet Instant Coffee sells for $39.00 a pound, compared with our country, where at $8.40 a pound is considered high. When you hear people telling about the wonders of the workers' paradise with its centrally-planned economy and government price fixing--just remember what price the average Russian really pays for a cup of coffee and a set of wheels. This is Ronald Reagan. Thanks for listening.		Details Batch Number 78-06-B7 Production Date 04/03/1978 Book/Page Online PDF Audio Youtube? No
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