The change of economic system in Hungary

Three points

1. Hungary planned to change a domestic economic system from communist economy to mixed-market economy because communist economy made peoples’ standard of living decline.

2.The power-oriented price system caused a conflict with actual industrial system because people came to pursue their private benefits, while small number of people tried  to control the whole domestic economy in the power-oriented price system.

3. In the communist economy, thee wage system did not take into account the productivity and actual market movement. Therefore, Hungarians could get cheaper salary than workers in other European countries.

Two questions

1. How long had Hungary continued the economic system with no market mechanism?

2.Were there any historical events that promoted Hungary to reconsider domestic economic system?

Observation

This movement can reflect the change of society because the old economic system caused  a conflict with the current industrial system. The change of industrial system created a necessity to change domestic economy.

2 thoughts on “The change of economic system in Hungary

  1. I like how you pointed out that the wage system did not take into account the productivity and the actual market movement. This cause Hungarians to receive cheaper salaries than the rest of Europe.

  2. I like that you separate the reasons behind the second Hungarian revolution. Clearly economics was a major issue but also the issue goes back to 1956. I think its good to separate the two and show that they are different, but important reasons.

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