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| Could legalization of the undeclared earnings being of the {crisis in Spain |
By:
rafalinares |
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With the intention of making understandable the lines that continue, though in some way I should pretend that my ideas are totally shared, I must declare myself as neoliberal. I believe this is the correct approach of the Economy.
Once again, the crisis has highlighted the utter inability of politicians to correct a negative scenario.
In Spain, Zapatero government simply to buy votes through social policies.
I am sure that the message contains the confirmation of the fact that the Government can not replace to a multitude of operators who have stopped working or little lacking.
That is not possible to create jobs for them all, or generate multiplier effects of investments. All resources used will be wasted and future generations will pay.
Adam Smith advocated that the personal interest of men is what makes it work so well to market economies, not benevolence. And adding an unlimited number of selfish interests optimize the system.
Meanwhile, the Conservative Party only proposed structural reforms. It is the ideal resource to not be forced to come to the fore, effectively being extremely beneficial that the Socialist Party lose power in this context that exceeds, in the face of upcoming elections. Rajoy wait it stops raining.
Obviously, E Plan course was not the solution to the unemployed from the construction sector. Not even the short term.
Amounts have been distributed to all municipalities based on their number of inhabitants. Perhaps such action is fair and equitable. But of course, is not efficient. Resources should have been bonded and have undertaken major projects for the future.
Moreover, structural reforms need to start craving decades as a tangible reality.
And since it could not be otherwise in times of crisis, it turns the demagogic debate about the desirability of reducing the indemnifications for dismissal and the guarantees of workers.
Companies, trying to optimize their activity, take of the market the employees who need. Not even one more, not one less. Certainly if the expectations are positive, they have major predisposition to contract, and if they are negative, to dismiss.
Knowing the failure of the government of Zapatero, forget about all the good purposes, which can be benevolent to result in the medium to long term, and focus on a shock treatment, so long as the fever does not cease to be so high.
It is not about developing hundreds of measures, but to undertake a couple of them with realism.
I am sure that the crisis is not real estate, but financial. No money in the credit markets, and therefore, no consumption.
Consumption is met through savings or through loans. Shining both by their absence, there are no potential buyers, and that is the reason we do not even come to price stability. It is a fallacy to say that properties are overvalued by 10%, 40% or 100%, when really they have no market price.
People say that there is no credit because the own banks lack resources. Not entirely true, or at least crave the claim was incomplete. Banks as we know them today, or at least those who intend to refer, are only financial intermediaries.
We must therefore distinguish between the Commercial Bank of Investment, which returns her the money he has temporarily advance, and recognizes its net interest income.
The authentic investors, final buyers of the liabilities of the commercial banking, receive the generic name of -Shadow Banking-. They have less tendency to invest if the whole world hopes that the price of the assets goes down. Nobody buys anything that tomorrow could cost less.
It supposes the immediate dip in, the theory of the -autofulfilled prophecy-, coined by the sociologist Robert Merton, which in origin is not another thing that a false definition of the situation (the price of the assets will go down), which raises a new behavior (stopped giving loans), which becomes false true original budget ({finally the prices go down|eventually prices fall).
If lenders do not invest, how can we change the situation? Are there alternative investors? Can avoid fulfilling prophecy itself, ensuring that the assets lose their value?
Perhaps a black money amnesty may be the solution if we are able to {avoid tearing the garments|crying out to heaven.
About the Author:
Sources: http://www.articulo.org/6235/raflinares" target="_blank. http://abogadotenerife.com/" target="_blank |
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