6 ms·

I thought of this quote from the PBS documentary Commanding Heights LESZEK BALCEROWICZ, Finance Minister, Poland, 1989-1991: Just after breakthrough, there is

I thought of this quote from the PBS documentary Commanding Heights LESZEK BALCEROWICZ, Finance Minister, Poland, 1989-1991: Just after breakthrough, there is a short period, a period of extraordinary politics. By definition, people are ready to accept more radical solutions because they are pretty euphoric of freshly regained freedom. One could use it only in one way, by moving forward very, very quickly. JOSEPH STANISLAW: Poland decided to do what Bolivia did, to introduce shock therapy, cut back on government expenditure and try and introduce a market system and see if it could work. NARRATOR: Prices almost doubled, and shortages didn't end. All Balcerowicz could do was chew his nails and wait for the law of supply and demand to kick in. But then, after a few days, farmers began to bring their produce to market. LESZEK BALCEROWICZ: I was going for a walk, and we were looking at the prices in the shops, the prices of eggs. NARRATOR: His aides told him to concentrate on the price of eggs. If eggs appeared, if eggs got cheaper, the market would be working. Eggs did appear. And then the price of eggs began to fall. LESZEK BALCEROWICZ: And I remember that very important day when the prices of eggs are falling. This was one of the signals that the program, the stabilization program, is working. https://www.pbs.org/wgbh/commandingheights/shared/minitext/tr_show02.html https://www.pbs.org/wgbh/commandingheights/shared/minitext/t...

aerhardt 3y ago
Very interesting. I doubt you'd need to convince many Poles today that a market economy - with its shortcomings and all - is better than a centralized one.
- mchelpa 3y ago
  Balcerowicz is hated by many Poles. The cost of his reforms was pushed onto the poorest citizens. Because of the mess created by him in the early years of transformation, some people are still convinced that communism was better. Real change came later, when proper regulations were introduced, and his successors cleaned his mess.
  - sam_lowry_ 3y ago
    Same for Russia with Gaidar. Deregulation was inevitable, and people suffer if economy changes dramatically. And we always find someone to blame.
  - troad 3y ago
    > the cost of his reforms It wasn’t the cost of his reforms, it was the cost of 40 years of communism. The only way out of the frying pan is through the fire, sadly. Blame the people who put Poland into the frying pan, not the people who led it out.
    - sam_lowry_ 3y ago
      > 40 years of communism Don't attribute to communism what can be explained by incompetence.
      - Jensson 3y ago
        Communism results in incompetence, that is the whole problem.
leidenfrost 3y ago
It's a nice story. I even wish it applied to all contexts. In the real world, we have to ponder monopolies, the export market, other, non-free, big economic bullies, trying to destroy competition through subsidized goods, etc.

aerhardt 3y ago

Very interesting. I doubt you'd need to convince many Poles today that a market economy - with its shortcomings and all - is better than a centralized one.

mchelpa 3y ago
Balcerowicz is hated by many Poles. The cost of his reforms was pushed onto the poorest citizens. Because of the mess created by him in the early years of transformation, some people are still convinced that communism was better. Real change came later, when proper regulations were introduced, and his successors cleaned his mess.
- sam_lowry_ 3y ago
  Same for Russia with Gaidar. Deregulation was inevitable, and people suffer if economy changes dramatically. And we always find someone to blame.
- troad 3y ago
  > the cost of his reforms It wasn’t the cost of his reforms, it was the cost of 40 years of communism. The only way out of the frying pan is through the fire, sadly. Blame the people who put Poland into the frying pan, not the people who led it out.
  - sam_lowry_ 3y ago
    > 40 years of communism Don't attribute to communism what can be explained by incompetence.
    - Jensson 3y ago
      Communism results in incompetence, that is the whole problem.

leidenfrost 3y ago

It's a nice story. I even wish it applied to all contexts. In the real world, we have to ponder monopolies, the export market, other, non-free, big economic bullies, trying to destroy competition through subsidized goods, etc.