Thursday, 4 December 2008
If you are only moderately interested in economics, just listen to the ABBA singing "Money, money". They know all about it.
The economy - everywhere - is heading south, bye bye boom days. Most of us are mere onlookers while the future unfolds, but not everybody is idle.
Opposition or governing parties - right, left or center, green guys or oil hawkers - realize their hour has come. Now is the time to tell us what to do to get the economy humming again. "Don't worry, good people, we'll manage".
What I have not yet heard is that: you might easily loose your job, could be we'll have to fight inflation, quite possible taxes have to be raised. On the contrary, I am listening to a tune I know too well: "we'll do the washing without your getting wet".
Some days ago a worthy politician (no name given, no country specified) told me this:
"Every citizen should get a bonus of 500 € (about 600 $) to be spent immediately with the only condition to add 200 of his own.
Imagine I get the 500 what would I do with this: I would buy a new computer so as to be able to run "Microsoft Flight Simulator X" thus making happy Hewlett-Packard and Bill Gates. And afterwards? Nothing. Same script as before, just read again the first two lines here above. Useless, costly straw fire.
Others are clamoring - a big chorus, worldwide - for a substantial tax break. That's more or less the same as the 500-€-stunt. Most of us don't pay a fortune in taxes anyway thus the break will look like a pittance. And the big income people will like it, certainly, but it will just make a splash in their wallet.
And all that money where does it come from?
a) from the state coffers - but I hear they are empty
b) borrowed somewhere - but the money has to be paid back and
before there are the interests.
c) the good old money printing machine - say hallo to inflation
So I think we have to solve the recession the hard way: cut useless prestige spending, raise the taxes where possible.
Because if we don't want to go under, become a kind of backwater, this has to be done: upgrade our schools and universities, research and development in real science, credit to people who wish to create new businesses. Stop our addiction to oil coming from non palatable countries.
These are the challenges and there the money must go. Our money.
Meanwhile, if someone of my dear and esteemed readers wishes to save souls from hell by doing something for or against the beast exposed, the economic collapse 2008-2009, the number 666, the anti-christ revealed, just listen to this one: