TRADITIONAL ECONOMIC RECIPES DON'T WORK
WHO WILL ADVISE POLITICIANS?
GDP growth only serves to fool the citizens
GDP says nothing about the economic situation of individual citizens. Growth is so important that deflation is seen as a harmful phenomenon! In fact, a reduction in prices also reduces GDP. Central banks even set inflation targets. For a while, absurd negative interest rates were also in play.
Foreign investment
What is forgotten is that this is essentially corruption. Investment incentives, tax breaks, ready-made industrial parks and infrastructure favour some companies.
Direct payments to underdeveloped regions
EU financial aid to coal regions has had little impact on job creation, renewable energy development or energy savings, according to a report published by the European Court of Auditors. They warn that billions from the new Just Transition Fund could face a similar fate. The Eurofunds have a similar track record.
Reforms
A popular topic with no precise content. Eastern Europe has already introduced all sorts of reforms. Without result.
Innovation and research
Manufacturing will still move to Asia. Innovation in pharmaceuticals depends on strong pharmaceutical companies. The market economy is a constant competition. And it is naive to think that every country will win.
Better education
The best will go abroad anyway. Very few students are blessed with both high intellect and creativity. And the assertiveness to get ahead. Even the highest quality education won't change that. Countries don't need armies of innovators, they need many more people to do ordinary jobs - food production, services, doctors ...
Cryptocurrencies
They have become the subject of speculation, fraud, theft. They have problematic mining and storage. They have not brought prosperity and the experiment in El Salvador ended in failure.
Unconditional income
A promising idea, but no one has yet figured out how to finance it.
Lower taxes
Manipulating taxes cannot substitute for a thriving economy.
Reduce taxes on companies, remove regulations, cut budget spending
This "solution" allowed Liz Truss to stay in office for only 45 days.
Cutting interest rates
The well-known and erroneous fable about the price of money. Low interest rates will not help business. Low interest is useless if there is no real business plan. Nor will high interest reduce inflation by making less money. On the contrary, higher interest translates into higher prices for goods and services. And it also reduces the supply of goods and services, or hinders competition. It is always advantageous for banks to have as little money in circulation as possible.
Result. Economists offer no real solutions. Find at least one that works or that can work. You won't find any.
Author : Jozef Stasík, Slovakia
E-mail : info@belgof.com
Twitter: @JozefStasik
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