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June 6th, 2012, 02:20 AM
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#121 | | Historian
Joined: Apr 2010 From: Slovakia Posts: 8,716 | Quote:
Originally Posted by Lord Lucan I don't think most people including myself had any idea how capitalism is supposed to work. And they probably would be terrified if they knew how bad the 90-ties will turn out to be. We can agree here, but I don't think there were less harmful way out. | people, at last in Czechoslovakia still remembered Great Depression and WWII. They were aware what capitalism can lead to. Of course younger generation did not lived through those times. But there were plenty of older people who did.
Majority of people in 1989 did not wanted capitalism. Here is part of Havel's speech before he became president where:
"Twenty years official (communistic) propaganda claimed that I was an enemy of socialism, that I want to restore capitalism, that I was in the service of world imperialism, from which I accepted fat rewards that, I want to be the owner of various businesses. They were all lies,..." source
He was lying every single word of course but that is not important for our discussion. What it does demonstrate is that Havel considered it important in 1989 when he wanted to become president to tell people that he does not want to restore capitalism. That tells you something about general opinion of public in those times. Quote:
Originally Posted by Lord Lucan Ideology aside, how are you supposed to run an economy owned by state? How do you make your average soviet production plant efficient and innovative? I would say by letting the management and/or workers of said plant to be profit oriented by letting them keep most of the profits. By letting them fire those who are not motivated and incompetent. By letting them decide what to produce, where to get their raw materials and where to sell and by what price. Furthermore to upgrade production lines or invest in research for new products someone must give money. Who will do that - the state or workers who get the current profits? If state - where it will get money if profits go to workers? If workers - they will want a share and become de facto capitalists.
The only other option in my opinion is privatization. Can you see other way out? | Yes I think so. I do not think socialism was not working economically. It had its good sides and it had its downsides. Instead of dismantling it we should have improved it.
As for privatization, there should have been none. Privatization was just gigantic state sponsored robbery of public property and massive corruption. One which still haunt us 20 years later. Individual enterprises should have been allowed, but ones build and developed by their owners.
And most importantly Comecon should not have been dissolved and our markets open wide to West. Eastern European countries should have kept their common market and open it only slowly under condition favourable to us not to West. Something China is doing more or less successfully.
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June 6th, 2012, 02:39 AM
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#122 | | Historian
Joined: Apr 2010 From: Slovakia Posts: 8,716 | Quote:
Originally Posted by Lord Lucan My life experience is very similar. If you are semi-intelligent, can leave an impression of somewhat normal human being and show some work ethic there's no way you can fail finding a job to make a living.
That just shows that there is myriads of poeple who doesnt qualify for even the aforementioned (very modest) criteria. | You are wrong in this one. Economy is not infinite space with infinite resources. People does not sit on piles of money, ready to buy your products or services. Energy does not appear out of nowhere. If you manage to produce something people want, money which they will spent on your product will not be spend on someone else product. You will just take someone else place on market.
Therefore it does not matter how much people qualify or not. If society and its economic model provide just for certain amount of consumption, there will always be people who will be unable to find job.
Only way to provide jobs for all, or at last most members of society is to direct and plan your economy to certain degree. You have to manage resources, people including.
I am always amazed that most ardent proponents of free market actually newer dare to implement it in their own business. They run them as certainly planed and directed. Why?
If free unlimited market without any central interference, planning and direction is most effective economic model, than how comes nobody ever implemented it in their own factory or office? If it works so well on general scale in system than it sure should work as well in subjects and subcomponents of that system.
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June 6th, 2012, 02:42 AM
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#123 | | Historian
Joined: Apr 2010 From: Slovakia Posts: 8,716 | Quote:
Originally Posted by Lord Lucan My life experience is very similar. If you are semi-intelligent, can leave an impression of somewhat normal human being and show some work ethic there's no way you can fail finding a job to make a living.
That just shows that there is myriads of poeple who doesnt qualify for even the aforementioned (very modest) criteria. | You are wrong in this one. Economy is not infinite space with infinite resources. People does not sit on piles of money, ready to buy your products or services. Energy does not appear out of nowhere. If you manage to produce something people want, money which they will spent on your product will not be spend on someone else product. You will just take someone else place on market.
Therefore it does not matter how much people qualify or not. If society and its economic model provide just for certain amount of consumption, there will always be people who will be unable to find job.
Only way to provide jobs for all, or at last most members of society is to direct and plan your economy to certain degree. You have to manage resources, people including.
I am always amazed that most ardent proponents of free market actually newer dare to implement it in their own business. They run them as certainly planed and directed. Why?
If free unlimited market without any central interference, planning and direction is most effective economic model, than how comes nobody ever implemented it in their own factory or office? If it works so well on general scale in system than it sure should work as well in subjects and subcomponents of that system.
And here comes surprise: business which plans, directs and manage its resources and activities beats one which does not every single time.
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June 6th, 2012, 02:46 AM
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#124 | | Historian
Joined: Apr 2010 From: Slovakia Posts: 8,716 |
Double post.
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June 6th, 2012, 02:46 AM
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#125 | | Historian
Joined: Apr 2012 From: Romania Posts: 1,564 | Quote:
Originally Posted by Lord Lucan You mean in case of privatization? | Yes, this is what I meant.
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Last edited by Ficino; June 6th, 2012 at 04:03 AM.
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June 6th, 2012, 02:56 AM
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#126 | | Historian
Joined: Apr 2012 From: Romania Posts: 1,564 | Quote:
Originally Posted by arras As for privatization, there should have been none. Privatization was just gigantic state sponsored robbery of public property and massive corruption. One which still haunt us 20 years later. Individual enterprises should have been allowed, but ones build and developed by their owners. | I disagree that it should have been no privatization at all, I think it was necessary for some cases, but not indicated for others. I thoroughly agree that the way in which it was done was a "gigantic state sponsored robbery of public property and massive corruption", and its goal was to enrich even more those who accumulated wealth during the communist regime, mainly by robbing the same state property. They and their children are those who have now the economic and political power, the so called successful, "enterprising", capitalists.
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June 6th, 2012, 08:20 AM
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#127 | | Lecturer
Joined: Jan 2010 Posts: 386 | Quote:
Originally Posted by Ficino They and their children are those who have now the economic and political power, the so called successful, "enterprising", capitalists. | I dunno maybe Romania was exeption, but I dont think its true for rest of a Soviet block. People of all kinds of background got the goodies during privatization, not necessary Party bosses. The common thing about them was half criminality, shamelessness and greed. In the times of social change **** always comes to the top.
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June 6th, 2012, 08:45 AM
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#128 | | Lecturer
Joined: Jan 2010 Posts: 386 | Quote:
Originally Posted by arras As for privatization, there should have been none. Privatization was just gigantic state sponsored robbery of public property and massive corruption. One which still haunt us 20 years later. Individual enterprises should have been allowed, but ones build and developed by their owners. | State (read bureaucracy) are not capable of efficient management. Quote:
Originally Posted by arras And most importantly Comecon should not have been dissolved and our markets open wide to West. Eastern European countries should have kept their common market and open it only slowly under condition favourable to us not to West. Something China is doing more or less successfully. |
What common market? The empty one? Filled only with outdated tech, ugly consumer goods and food shortages? So we could continue to manufacture crap and sell it to each other for fake money?
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June 6th, 2012, 08:48 AM
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#129 | | Historian
Joined: Apr 2012 From: Romania Posts: 1,564 | Quote:
Originally Posted by Lord Lucan I dunno maybe Romania was exeption, but I dont think its true for rest of a Soviet block. People of all kinds of background got the goodies during privatization, not necessary Party bosses. The common thing about them was half criminality, shamelessness and greed. In the times of social change **** always comes to the top. | I didn't necessary imply the party bosses. Many of those who enriched during the communist regime were involved with the black market, various Gypsies and other "dodgers", tolerated by some from our security services, as they received "taxes" and goods from such businesses. Those circles of friendships and mutual assistance have persisted and after the fall of the regime they literally spoiled and destroyed the state property and managed to put the hands of anything of value or sell it, officially for "nothing" (in fact for a lot of money they pocketed), to some foreigners.
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June 6th, 2012, 11:04 PM
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#130 | | Historian
Joined: Apr 2010 From: Slovakia Posts: 8,716 | Quote:
Originally Posted by Lord Lucan State (read bureaucracy) are not capable of efficient management. | There is no reason why it should not. It is organization like any other. It certainly is no worst than large shareholder corporation.
There are plenty of examples when it was run effectively. Like Slovakia during WWII.
It is funny that during times of war or stress, even capitalistic countries resort to directed planed economies. When states need most effectivity out of their economy, they reach for centralised, directed ones. Quote:
Originally Posted by Lord Lucan What common market? The empty one? Filled only with outdated tech, ugly consumer goods and food shortages? So we could continue to manufacture crap and sell it to each other for fake money? | And keep our factories running and people employed. Now we have shiny western consumer goods of crappy quality and western leftover food without any nutrition value but we can't afford them anyway as we do not have jobs.
I can not find more tragic example of this than your own country. If we does not count countries were there was war like Moldova. Your economy basically ceased to exist and half of productive population already left country to search jobs in the West. And there is no prospect of improvement as West itself plunged in to long crisis (how is that possible bye the way with best economic system in the world? Shouldn't capitalism and free market lead to prosperity?). Not even Eastern block markets and cheap labour is sufficient any more to keep capitalism running. Now we need war.
I have better idea of future for my children than this.
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