Candido Marquesán
12/03/2011
The lack of demand, to be reduced consumption dramatically, and the contraction in investment are two problems that make it increasingly difficult to leave this economic crisis in Spain. Both have an impact on economic growth negative or very low, which hinders job creation. The economic policies implemented and looming in the near future, indicate that neither demand nor the investment will be enhanced. Quite the contrary.
For most of the English entry heavily indebted, with the freezing of their pensions, the reduction of their wages, and inflation is already above 3%, with the consequent loss of purchasing power, would be almost miraculous increase consumption and increase demand. More than 4 million unemployed have enough to survive. That have savings tends to keep them, for fear of the unknown. Inflation, it was logical that prices rose after the rise in indirect taxes (VAT, tobacco), rising fuel prices and some utilities (electricity, gas).
investment has been drastically reduced, both private and public. Entrepreneurs do not invest if not for the excessive growth of labor costs, and that the working class has taken to cut or freeze their salaries, but by the great difficulty of access to credit from financial institutions. The public sector due to the harsh fiscal adjustment policies, among which include aid to financial sector has inevitably reduced and your investment. The consequences are logical. No investment gains are not growing and so does not create jobs. And if there is unemployment, not eaten, and if not consumed, there is no demand, no demand, there to produce, and whether we should produce, companies have no choice but to fire. Thus more unemployment. It's a real vicious circle. And as the economy back, the markets are wary of the English economy, for what it costs us more of our debt financing. Consequently, more deficit groups, that they force us to control markets. More tax adjustments. Since no one wants to reduce the deficit by way of increased tax revenue, not to touch the interests of the privileged classes, must be done to increase revenue by privatizing the best of our heritage, such as the Lottery or airports, or by way of expenditure, with reduced wages and pensions, and investments. Thus contracted consumption. And start the vicious circle. How do we get out of the crisis? Really, I see no way out. We seem to want to sink into poverty. Complicate To finish, there was another sharp rise in fuel by North events de África y Oriente Próximo, además de las materias primas, que supondrán más inflación. Para combatirla Jean-Claude Trichet acaba de anunciar una nueva subida de los tipos por parte del BCE, lo que elevará el euríbor --y con ello de las hipotecas-- y en general encarecerá el crédito.
Esta política económica para corregir la crisis impuesta, como la única posible, desde los organismos como el F.M.I , O.C.D.E , la U.E., siguiendo las directrices de los mercados y de las agencias de calificación, basada en reducción de los déficits públicos, con durísimas políticas de ajustes fiscales, con recorte de prestaciones sociales, supone la ruina de muchos at the expense of enriching a few. Fortunately
and dissenting voices are emerging as represented by terrifying economic manifesto, in which four shows surprise economists by the submission of European economic policies to the demands of financial markets. What frightens them is that the policy of cutting may prolong the effects of the crisis-hit countries, shattering social progress. Refute the alleged irrefutable truths of neoliberalism: financial markets are efficient, promote economic growth and are good judges of the solvency of the States, is to reassure the financial markets to finance public debt, we must cut spending to reduce debt, the euro is a shield against the crisis, public debt will make you pay for our excess to our grandchildren, the EU stands for European social model, the Greek crisis is a step forward to economic governance and a real European solidarity ... As loath to admit that other policies are not possible, alternative measures have 22 more fair, rational solidarity and resolve the crisis. Some of them: to prohibit speculation banks to prevent the spread of the bubbles and bankruptcies, to limit financial transactions that meet the needs of the real economy, raise taxes sharply income too high to discourage unsustainable yields race, transparency of rating agencies, purchase by the European Central Bank (ECB) of government securities, conduct a public audit of public debt to determine its origin, maintenance and improve social protection, a strongly redistributive direct taxation on income-
As we see no other alternatives. Wow that if any!
school teacher
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