Portugal Hit by Strike - WSJ.com
Q (LF):
Looks like extended periods of reduction of government safety net support for unemployed and cuts in public services and increases in taxes is a "winning formula for stimulating higher rates of real growth(sic)." How long do governments have to follow policies which are obviously not working before they change their policies.
A:
I'm not sure what magic wand you think can be waived.
What is clearly not happening is to cut taxes (and all the things taxes pay for) and make the regulatory and legal environment business friendly.
It's the same debate that exists in the US - i.e. after a certain level of tax distortion, demand for goods shrinks and the incentive to set up new businesses and expand old ones leaves.
A trenchant question would seem to be "are educated young people staying in Portugal (i.e. to help grow the economy and make it stronger) or are they leaving?" From what I've seen, they are leaving.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment