Post by account_disabled on Mar 9, 2024 19:42:25 GMT -8
Central Banks, particularly the Federal Reserve and the European Central Bank, have, and will continue to do so, flooded the market with public debt . They have also purchased corporate debt from large private companies, and will continue to do so. The monetary and budgetary policy of States, not only in developed countries, but throughout the world, relaxed, and governments admitted to crossing the limits of the so-called macroprudence of public deficit. That is, the limits of the spending ceiling , inflation and debt have been jumped . Especially in countries with recognized reserve currencies, especially the dollar and the euro. In other words, “legal” money was issued in exchange for all that debt. And this will continue for a while, so that Health, in capital letters, and the economy do not collapse as a consequence of the extraordinary stoppage of social mobility caused by the epidemiological emergency.
All of these monies are channeled and implemented into direct and indirect aid of all kinds. The US delivered checks to families and companies, renews infrastructure and expands free early childhood education, among other measures. Europe, in addition to generalized subsidies, credit guarantees for companies and the self-employed, assumed Australia Phone Number direct and indirect employment expenses and is designing a multi-annual plan of investments and subsidies for the digital, green economy and scientific innovation. Furthermore, the entire global vaccination plan, even though the central countries have hoarded doses in abundance, is basically paid for with public money. And so we could continue detailing state public intervention policies to sustain the vital signs of health and the economy.
Resilience is the fashionable term, which in economics means resisting with public aid. Lower taxes? Is it possible then to talk about lowering taxes in a circumstance like the one described? It is enormous nonsense and political irresponsibility that, in the face of an essential massive increase in public spending, a tax reduction is proposed , unless it is being hidden from adjusting the emerging public deficit with an equivalent reduction in social spending. This is what was done in the previous economic crisis of 2008, with the serious results of increased job insecurity, poverty and economic inequality. Public spending , whatever it may be, is financed with public resources, that is, with the income that the State can collect from economic activity.
All of these monies are channeled and implemented into direct and indirect aid of all kinds. The US delivered checks to families and companies, renews infrastructure and expands free early childhood education, among other measures. Europe, in addition to generalized subsidies, credit guarantees for companies and the self-employed, assumed Australia Phone Number direct and indirect employment expenses and is designing a multi-annual plan of investments and subsidies for the digital, green economy and scientific innovation. Furthermore, the entire global vaccination plan, even though the central countries have hoarded doses in abundance, is basically paid for with public money. And so we could continue detailing state public intervention policies to sustain the vital signs of health and the economy.
Resilience is the fashionable term, which in economics means resisting with public aid. Lower taxes? Is it possible then to talk about lowering taxes in a circumstance like the one described? It is enormous nonsense and political irresponsibility that, in the face of an essential massive increase in public spending, a tax reduction is proposed , unless it is being hidden from adjusting the emerging public deficit with an equivalent reduction in social spending. This is what was done in the previous economic crisis of 2008, with the serious results of increased job insecurity, poverty and economic inequality. Public spending , whatever it may be, is financed with public resources, that is, with the income that the State can collect from economic activity.