Dictionary of Arguments

Philosophical and Scientific Issues in Dispute

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Disputed term/author/ism Author
Socialism Sachs Mause I 99f
Socialism/transformation/Sachs: for the transformation of socialist societies after the turn of 1989, Jeffrey Sachs and David Lipton proposed a "shock therapy", i.e. a sudden introduction of market mechanisms and budgetary discipline. (1) This strategy was first drawn up for Poland, but was then applied in other countries as well. The background was the assumption that reform losers - dismissed workers, managers of state-owned companies and bureaucrats - would organize and resist ((s) change).
This calculation was based on a political understanding that politicians conceived as entrepreneurs in a vote market, analogous to the benefit maximizing homo oeconomicus of neoclassical models in economics.
VsSachs: these measures were only successful in the ethnically homogeneous countries, but failed in the territory of the former Yugoslavia. In the Soviet Union, the initial democratic and market-economy reforms led to the mutual blocking of the president and the anti-reform parliament and to a deep crisis in public finances.

1. Lipton, David, und Jeffrey Sachs, Creating a market economy in Eastern Europe: The case of Poland. Brookings Papers on Economic Activity1, 1990, p. 75– 147.

EconSachs I
Jeffrey Sachs
Nouriel Roubini
Political and economic determinants of budget deficits in the industrial democracies 1989

Mause I
Karsten Mause
Christian Müller
Klaus Schubert,
Politik und Wirtschaft: Ein integratives Kompendium Wiesbaden 2018