Gorbachev and the MarketnNo doubt Gorbachev has been entirely misunderstoodnin the West, and continues to be. The primary myth isnthat glasnost and perestroika represented fundamentalnchange from the Soviet past. They did not establishnWestern-style economic or political freedom, as the medianled Americans to believe. Instead, each was designed ton”improve and perfect” the workings of socialism. “I’ve beenntold more than once that it is time to stop swearingnallegiance to socialism,” Gorbachev said recently. “Whynshould I? Socialism is my deep conviction, and I willnpromote it as long as I can talk and work.”nGorbachev has always been an adherent of communistnideology. Despite seeing firsthand the malnutrition andneven starvation caused .by socialism, and despite the murdernof his grandfather by Stalin’s men, he chose politics as hisnlife’s work.nIn the Communist Party, as in a mafia family, clawingnyour way to the top requires many demonstrations of loyalty,nsometimes involving murder, and Gorbachev performednwell. He thinks like a Gommunist: issue orders and demandnYuri N. Maltsev is a senior adjunct scholar of the Ludwignvon Mises Institute.n22/CHRONICLESnby Yuri N. Maltsevnnnobedience. The only sense in which Gorbachev is differentnfrom his predecessors is that he is smoother.nContrary to myth, Gorbachev has systematically demolishednwhat little market activity existed in the Soviet Union.nFirst he waged an anti-alcohol campaign, where everybodynwith alcohol on his breath was taken to the police station andn90 percent of liquor stores were closed. The result was anboom in moonshine production that ended up poisoning asnmany as 55,000 people. Second, he waged a campaignnagainst “dishonest income ‘ that empowered party bureaucratsnto bulldoze thousands of private gardens, shutdownnfarmers’ markets, and crack down on unofficial transportation.nThird, he campaigned for “labor discipline,” in whichnpeople absent or late from work were sacked and the streetsnwere patrolled for people stepping out of line. Fourth, hencampaigned for “quality” and hired 150,000 bureaucrats tonoversee the state enterprises, which resulted in more opportunitiesnfor bureaucrats to extract bribes.nOnly then’ did his trumpeted move to the market takenplace. But it went the way of other “reforms” and ended upnnot creating a market at all, but only more state enterprises.nThere was no talk about private property and real buyingnand selling. Today, the KGB has been put in charge ofn