The Shock Doctrine / Therapy
Version 1.0.0 · Updated 2026-07-30
CORE DEFINITION
An attempt to solve deep-rooted economic problems through radical comprehensive reforms implemented in a short period (price liberalization, privatization, fiscal austerity), akin to removing a tumor—painful but quick.
SCAFFOLDING EFFECT
Reduce cognitive load
- Better to endure short-term pain than long-term suffering: In corporate transformation, should one change gradually (boiling the frog) or adopt shock therapy (major overhaul)? Shock therapy carries enormous risks, but for a terminally ill organization, it may be the only way out.
Anchor fast decisions
Implementing radical and comprehensive reforms in a short period (price liberalization, privatization, fiscal austerity) to break through accumulated problems with intense short-term pain, similar to removing a tumor—painful but quick. Suitable for situations where the patient is critically ill and gradual reform has proven ineffective.
MINIMUM ACTION
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Source support: Explicit
- zh.wikipedia.orghttps://zh.wikipedia.org/wiki/%E4%BC%91%E5%85%8B%E7%99%82%E6%B3%95verified
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