USSR’s demise & dissolution caused 4 fold Dow-Jones growth between 1990 and 2000
The 1990’s yielded unprecedented boom of the stock market as it was
reflected by the Dow-Jones growth from 2,800 in January 1990 to 11,400
in December 1999.
I am surprised that practically nobody did directly and clearly
relate this growth to the effect of USSR’s demise & dissolution, which
was affecting global political situation and economical development’s
prospective and outcome.
Dissolution of USSR put, at that time, the confrontation of two
competing ideological systems: Capitalism vs Socialism/Communism to
This event produced two major consequences (which worked in
conjunction with each other):
1. The was no more fear that investments of the Western (US, Western
Europe, etc) capital around the world (especially in the developing
countries of the “3rd world” – where labor was extremely cheap) could
be lost via Socialist nationalization / expropriation conducted in
2. The Capitalism system, prevailing as governing in the countries of
the Western world, did not need anymore to show its own people social
advantages of high standard of living under Capitalism over lower
standard of living under Socialism.
Above two consequences allowed safely both to export jobs from the countries of
the Western world (especially from USA) and to invest capital to the
developing countries of the “3rd world”, which due to cheap labor there allow to tremendously