Consultor de Marketing Digital y Comunicación en Pamplona

Etiqueta: economics

Freedom to trade

I cannot explain better:

«The specter of protectionism is rising.  It is always a dangerous and foolish policy, but it is especially dangerous at a time of economic crisis, when it threatens to damage the world economy.  Protectionism’s peculiar premise is that national prosperity is increased when government grants monopoly power to domestic producers.  As centuries of economic reasoning, historical experience, and empirical studies have repeatedly shown, that premise is dead wrong.  Protectionism creates poverty, not prosperity. Protectionism doesn’t even “protect” domestic jobs or industries; it destroys them, by harming export industries and industries that rely on imports to make their goods.  Raising the local prices of steel by “protecting” local steel companies just raises the cost of producing cars and the many other goods made with steel.  Protectionism is a fool’s game».

The End of the Crisis is not coming

Politicians say we do not have to lose our hope. May be it is the only advice they can offer as they do not have any other solution apart from increasing and increasing public spending. Therefore, we can understand why they highlight any minimum change their watchmen observe in the economic environment. They are signs of hope. Last week we receive information on one of them, that several big banks are starting to make profits. It is a positive news, of course, but we are not very sure that it means the arrival of winds of prosperity.

Economists Rebellion

«Free market could be a son of a bitch but it is our son of a bitch»

Of course this is not a real quote from one passionate liberal economist, but it could be. At least if you read the statement The Cato Institute has promoted to oppose to the economic package implemented by the new American Emperor.

«President Obama says that economists from across the political spectrum agree on the need for massive government spending to stimulate the economy. In fact, many economists disagree. Hundreds of them, including Nobel laureates and other prominent scholars, have signed a statement that the Cato Institute has placed in major newspapers across the United States».

To showing their intellectual power, they have published an advertisement in the main US media pointing out that they do «not believe that more government spending is a way to improve economic performance». They argue that other big government interventions did not rescue  America from the deep economic crisis. They prefer to repeat the old liberal recipes: «To improve the economy, policy makers should focus on reforms that remove impediments to work, saving, investment and production. Lower tax rates and a reduction in the burden of government are the best ways of using fiscal policy to boost growth». It is wondeful, but only one humble thinking: Who invented the ‘subprimes’? Regulatory Authorities? Or the happy liberal banker pursuing his prosperity and the richness of every man? I the State do not pays the huge bill, no banker is going to be generous.

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