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Confronted with rising prices and a drop in the real value of wages, Varsovians had to make serious changes in the structure of their household budgets and the way they satisfied their needs. Planning everyday expenses posed many difficulties. How extensive the changes had to be depended most of all on the initial situation in a household.
A small number of Varsovians did not have to modify their budgets at all — the resources they had gathered allowed them to maintain their previous standard of living. Cuts and reductions could only be made by those families which still earmarked some of their funds to satisfy higher order needs and had a complex structure of consumption. This was not the case of households whose income only sufficed to afford the basics, let alone those where people lived at the minimum subsistence level. At most, they could resort to reducing starvation diets.
Wherever possible, people tried to consume more rationally, a good illustration of which is summer vacations taken by the intelligentsia. In spite of the growing pauperization, the group found it hard to compromise on their ingrained code of social behaviour.
Consequently, efforts were made to cut down on costs rather than give up leisure trips altogether. High prices in well-known spas made smaller places more popular and foreign destinations were losing out to domestic ones. Most often, however, summer vacations were simply taken out of the budget. This was due to the shrinking discretionary fund, that is those resources which were set aside for additional and spontaneous expenses related mainly to tourism and culture. Books and newspapers were among the first items to go in the austerity drive.
This raised fears of society becoming barbarised. Budget cuts sometimes encroached on education, especially when children were forced to go to work to help their parents. And so they would repair and darn damaged articles of clothing and wore down those which have already finished their useful life.
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A lot of Varsovians could not replace the clothes they had had since so their appearance was not very far from the one shown in the cartoon. In order to be less reliant on paid services, people either substituted many of them with home work or simply gave them up. In August, for example, after yet another increase in ticket prices, the number of people travelling by tramways dropped significantly.
Berkan cut down on barber services — he would shave at home and have his hair washed by his wife. By cutting spending on higher order needs it was possible to rebalance household budgets. The share of basic goods and services, especially food, increased as a sign of society getting poorer. Yet, economies had to be made even in this category. The Ivy, whose target readership was made up of well-to-do women, offered recipes for cheap ginger bread and biscuits.
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The need to slash household budgets radically combined with the difficulty in satisfying basic needs made people focus on the material aspects of everyday life and their own problems. Care for the public good was pushed to the background. At a time like that, everyone tries to save himself as best he can.
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The drop in the value of real wages forced Varsovians not only to curb their household spending, but also to look for new sources of income. As the indicated time when a potential transaction could take place were most often in the afternoon, we may assume that such ads were published by working people. A lot of the ads were about the sale of furniture and clothes. However, the options to sell or pawn things were limited, especially in a society which had come out of a war and had struggled with economic problems for a number of years.
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Another way to improve the household budget was to look for additional earnings and find work for every family member. The share of women in the total working population in — was the highest in the entire interwar period. Inflation forced people to rationalise their household budgets and create new forms of saving wherever it was possible.
The rapidly depreciating Polish mark could not hold value effectively, which explains the disappearance of the traditional form of saving through putting aside part of the income.
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In their flight from the mark, people looked for alternative means of hoarding such as non-depreciable goods, foreign currencies and corporate stocks. One day, I skipped school and went to Warsaw [ As was noticed by E. Press reports of crimes related to inflation and social pauperization other than profiteering are equally numerous. The unprecedented scale of money circulation and the common avoidance of the mark created conditions for various forgeries.
People forged banknotes, shares in stock market companies and cut diamonds, 67 which were popular as a way of hoarding value. Once prices of tobacco increased, counterfeit cigarettes hit the market. As it was impossible to obtain resources to satisfy basic needs and access to many goods was limited, some people resorted to stealing.
The especially popular form of theft took place at railway sidings where loaded freight cars were parked. At the beginning of September, The Warsaw Courier reported that there were organised groups robbing trains in the area of Warsaw. We could venture a thesis that stealing basic necessities from trains at the time of the general frustration caused by reports of illegal exports may be interpreted as an act of social justice.
On the other hand, the lack of response from the authorities may suggest that there was more tolerance for such offences. Moral qualms related to the breach of social norms and breaking the law had to give way in the face of harsh reality. The experiences of Varsovians with the hyperinflation were to a great extent typical for the whole of Polish society.
Nevertheless, it should be noted that in some respects the economic situation varied depending on the region of the country. The process of economic integration was progressing very slowly, despite the fact that in Autumn the Polish mark came into effect on the whole territory of the Republic of Poland after its adoption in Upper Silesia on 1 November.
Prices varied from city to city and Warsaw was seen as the most expensive one. This disproportion grew because of the wage indexation practice. It was only in June that the local commission calculated the rates for May on the basis of locally collected data. The two-week calculation periods, which were introduced in Warsaw in August, were fully applied in Cracow only in December.
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As we take a closer look at the economic strategies adopted by Warsaw consumers and entrepreneurs, we can clearly see that, faced with everyday hardship, they pushed their individual interests to the fore focusing on the overriding objective of obtaining hard-to-find products and offsetting losses caused by the quick drop in the value of money.
Moral and social considerations were usually given less importance. The practices described above also created conflicts and made society very polarised, which is why the state tried to influence the worker-employer and consumer-seller relations by putting in place various regulations cost-of-living index, wage indexation, price control, anti-speculation laws.
Such steps, however, could not fully cope with the quickly changing reality of hyperinflation. Together with the rise of prices and the decrease of real wage value, frustration and discontentment grew. As the economic situation was deteriorating, the inept actions undertaken by the authorities undermined the trust of society towards the young Polish state. The government itself, hardly able to contain the worsening economic situation and embroiled in political in-fighting, only exacerbated social tensions. The economically motivated conflict between the government and the people reached its turning point on 6 November in Cracow when striking workers were attacked by the army.
The events showed the frustration of the general public caused by the difficult material situation and the resistance to the ineffectual policies of the centre-right government. They reverberated across Poland and in Warsaw where they compounded the feelings of anxiety and threat. They also added fuel to the criticism levelled by the opposition against the government, contributing to its fall in December The difficult experiences of the year affected the attitudes of the society in the years to come.
In , when in view of economic difficulties the value of the zloty started to drop and the so called specie inflation occurred, the fear of hyperinflation revealed itself with full force. Even though the level of currency depreciation was far from the one in , people panicked and started to exchange the zloty into foreign currencies. Also, at the time of the Great Depression, the fear of inflation influenced the decisions taken by the Polish government to consistently pursue a policy of deflation.
Inflation-related problems were also an important factor shaping the negative opinion of the parliamentary rule. The members of the Polish Socialist Party and Trade Unions were not wrong to say that the working class had to expect the deterioration of their situation. The dollar cost 11 zloty instead of 6 or 8 as before.
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