Poland's economic experiment based on Thomas Piketty
&gt; That means a pause in privatization, which Morawiecki says contributed up to 14 billion zlotys a year to the budget, a preference for domestic over foreign borrowing (the share of Poland&#x27;s debt owned by foreigners is down to 50 percent from about 60 percent three years ago) and a reliance on state enterprises to increase investment because private companies are too small and not boldly expansionist enough to provide the desired boost.<p>Sad to read this. Most LatAm leftist governments tried the same formula over the past 2 decades, with disastrous consequences. Focusing public borrowing on the domestic market means that the government will compete with households and businesses for capital, which have a much harder time raising capital internationally.<p>This will make it much harder (and raise interests) for households and businesses to secure capital for new investments (especially when the domestic savings rate is so low), restricting supply growth and possibly leading either to inflation or to an increase in imports.<p>That, coupled with a low or nill savings rate, an over-reliance on government for retirements and a low retirement age, means an economic disaster, exactly like the one in Argentina and Brazil.