Sectoral Conflicts in the U.S. and the Soviet Union: A Mesoeconomic Analysis

The paper briefly defines mesoeconomics and applies the mesoeconomic approach and the theory of sectoral clashes and coalitions to the U.S. and the former Soviet Union. Mesoeconomic involves an analysis of all demand and supply factors that determine sectoral output and input values. Mesoeconomic provides an intermediate economic analysis of the two-way relationship between the behavior of groups of economic actors and sectoral product values. According to the mesoeconomic diagnosis, the U.S. stagdeficits and malaise and long-term decline are caused by a sectoral clash disease. The U.S. economy is suffering from clogged medical, financial, agricultural, insurance, industrial, legal, and governmental arteries caused by past government policies. The former Soviet Union suffer from mesoeconomic paralysis as a consequence of previously suppressed but no open sectoral conflicts which discriminate against agriculture and services. Unless their common sectoral clash disease is cured, recovery prospects of both will remain slim.