01 / 05
The Shocking Sexism of Central Planning

Blog Post | Gender Equality

The Shocking Sexism of Central Planning

Communist factories failed to manufacture even the most basic items for women.

The 100th anniversary of the Russian Revolution has brought with it much whitewashing of history. Perhaps the most absurd example of this whitewashing is a New York Times piece claiming that women in the Communist bloc “enjoyed many rights and privileges unknown in liberal democracies at the time.”

The reality of centrally planned economics is shockingly sexist, no matter how much lip service was paid to gender equality. When there is no market incentive to fulfill human needs, it is women’s needs that are forgotten first.

Communist factories failed to manufacture even the most basic items for women. “In all these years, communism has not been able to produce a simple sanitary napkin, a bare necessity for women,” writes Slavenka Draculić. In How We Survived Communism and Even Laughed, she chronicles the everyday indignities suffered by women in Hungary, Poland, Czechoslovakia, Bulgaria, East Germany and her native Yugoslavia. Ordinary women’s sanitary products became sought-after items on the black market and most women made do with improvised substitutes.

The economic planners diverted resources away from producing anything considered feminine, and therefore frivolous and bourgeois. As Draculić puts it, in “central plans made by men, of course there was no place for such trivia as cosmetics.” Women often sewed their own clothes or improvised beauty products from kitchen items, even though anyone who looked too nice was “subject to suspicion, sometimes even investigation.”

Most women owned identical clothes because stores offered no variety. At one point, it seemed like half of the women in Warsaw had spontaneously opted to dye their hair the same garish shade of red. It was the only dye the chemical factories produced. Whether in Warsaw, Budapest, Prague, Sofia or East Berlin, women shared the same complaint: “There are no deodorants, perfumes, sometimes even no soap or toothpaste… Worst of all, there are no sanitary napkins. What can one say except that it is humiliating?”

Communist women were expected both to work outside the home and to do all the housework as well. (Engels thought it was “insane” for men to do chores; homemaking “unsexes the man”). As managers of the household, women felt the shortages’ sting first and it fell to them to find substitutes for everyday goods. There was a severe lack of food, baby formula, housing, and just about everything else.

The state provided housing by repeatedly dividing up existing apartments and assigning strangers to live together in ever-shrinking spaces, as described in Joseph Brodsky’s essay, “In a Room and a Half.” Bathrooms could double as kitchens (shared by multiple families) and crawl-spaces could count as bedrooms sleeping multiple people. The state provided childcare, but the waiting list was often long. The state guaranteed women jobs, but there could be a shortage of those too. In Yugoslavia the average wait time for a job was three years.

In the 1950s, Yugoslavia’s government planners declared toilet paper to be an unnecessary luxury item and commanded that factories stop producing it. For years the people made do with newspapers (shortages never slowed the printing of propaganda). Other declared “luxuries” included women’s hats, gloves, washing powder, children’s toys, milk, and meat. “The general rule was that anything at any time could be proclaimed a luxury,” notes Draculić. Anything for women was particularly at risk.

An American visiting the Communist Bloc in the 1980s would be aghast to find most women still doing laundry the way they had in the United States 50 years prior, without washing machines. Throughout the Communist Bloc countries, women often soaked clothes in metal tubs, scrubbed them bent over the tubs’ rims using washboards, then boiled them on stovetops, stirring the clothes with long spoons.

The elaborate ritual took up a whole day each weekend, and left their hands swollen, cracked and covered in sores. There were no rubber gloves to protect their skin – the economic planners saw no need to sell any. The male planners had likely never done the “women’s work” of laundry.

Shortages of laundry detergent were endemic throughout the communist countries. A woman in Sofia told Draculić, “When I find it, I buy two or three big boxes. You can never be sure when it will appear again.” She had never even heard of a clothes dryer. Of course, even if there had been washing machines and dryers, the frequent electricity outages would have made them unreliable.

The communist system didn’t produce machines to make women’s lives easier for the same reason it neglected their other needs and wants. For all the complaints about the profit motive, markets incentivize people to satisfy each other’s preferences through voluntary exchange, while state-run economies provide no such incentive. There is no shortage of soaring communist rhetoric on gender equality, but that cannot make up for the pervasive and sexist shortages under central planning.

This first appeared in CapX.

Axios | Goods Market Efficiency

Walmart Says Faster Delivery Is Changing How People Shop

“Walmart says faster delivery is changing how customers shop, with more people using 30-minute delivery for everyday needs like diapers, cold medicine and meal ingredients, the company told Axios.

Why it matters: Retailers are increasingly competing on speed — not just price — as Walmart, Amazon, Target and grocery chains battle to become consumers’ go-to platform for urgent shopping.

Driving the news: Walmart says it can now reach 60% of U.S. households in 30 minutes or less. The capability is currently offered in Dallas, Houston, Chicago, St. Louis, Atlanta, Tampa and Oklahoma City, with plans to expand further.”

From Axios.

Bloomberg | Goods Market Efficiency

Amazon and Walmart Compete to Better Serve Rural Communities

“Many rural online shoppers are used to waiting half a week or longer for purchases to arrive. Amazon, which disclosed its $4 billion rural delivery push last year, has narrowed that to less than 24 hours for 1 in 5 rural and small-town households, according to a Bloomberg analysis of delivery times for commonly purchased items. The company offers 48-hour delivery to 62% of rural households, the analysis found.

The payoff could be huge. Rural shoppers in the US collectively spend $1 trillion a year on clothing, electronics, household goods and other items, representing about 20% of retail purchases excluding cars and gasoline, according to Morgan Stanley. Amazon aims to recondition those shoppers to expect quick delivery, which would play to its strengths and make the company top-of-mind for online purchases.

Amazon’s biggest obstacle is Walmart Inc., which claimed the heartland decades ago during an aggressive expansion on its path to become the world’s largest retailer. Walmart has spent years training rural shoppers to come to its stores for groceries and then snag clothes, TVs and crockpots while there. It has a big head start on Amazon in proximity, with stores and Sam’s Clubs located within a 10-mile drive of nearly two-thirds of rural households, Bloomberg’s analysis shows. Walmart is also upping its e-commerce game, turning its thousands of locations into delivery hubs and pickup locations for products ordered online.”

From Bloomberg.

Economic Advisory Council to the Prime Minister of India | Goods Market Efficiency

India’s Recent Durables Goods and Asset Ownership Progress

“This study compares the Household Consumption Expenditure Survey 2023–24 with 2011–12 and finds significant advancements in spending on durables goods and ownership of key durable assets. These changes represent shifting priorities and aspirations for consumption among Indian households and improvements in quality of life. Additionally, our analysis focuses on the Bottom 40 (B40) percent of the households by consumption, which have been extensively targeted through programs of the Government of India and state governments. Studying the consumption and ownership trends of these households is an important measure of the effectiveness of welfare policies. Consumption patterns of households have transformed significantly over the last decade with households spending a smaller portion of the monthly per capita expenditure (MPCE) on food items. Across the three components – food items, consumables and services, and durable goods the share of food has fallen to less to than 50% in both sectors. Consequently, a greater share of household consumption expenditure is now non-food spending on consumables and services, and durable goods. Consumables and services are the largest component of household spending in urban areas.”

From Economic Advisory Council to the Prime Minister of India.

NBC News | Air Transport

Drone Deliveries, Slow to Take Flight, Come to Silicon Valley

“The hype around drones may finally be starting to deliver.

Drone deliveries, first touted by Amazon more than a decade ago, are slowly taking off in some parts of the U.S. On Thursday, Matternet, a drone delivery startup, launched its service to Silicon Valley…

The announcement adds to signs of growth for drone delivery. In Fort Worth, Texas, which recently became the first major city in the United States to offer commercial drone deliveries, they’re being used to deliver groceries from WalMart.

In College Station, Texas, Amazon’s drone delivery service has become common enough for residents to see the service as a noisy nuisance. And, with recent FAA approval, the company seems set to expand drone delivery operations across the city and beyond. 

Experts say many of the obstacles to drone delivery, most notably the technology and regulations, have been hurdled.”

From NBC News.