Portugal, Ireland Get More Time to Repay Loans - WSJ.com
One wonders how growth can take place?
1) You earn a good living - so taxes are high and you can't accumulate capital or earn after-tax income to replace borrowed capital.
2) You want to borrow, but the banks are stuffed with sovereign debt and, of course, there are lots of special charges and taxes to further increase the net cost of capital.
3) You have a capital investment idea and are comparing countries. With VAT in Portugal at 23%, you investment costs have risen.
or,
You look at all the costs of other services you might want, attorneys, etc. - there again, they are having to pay at 23% VAT to the government.
Oh yes, labor costs are low - but, you need information type labor and, gee whiz, all those people have left the country to get better jobs and pay elsewhere.
---
Could there be something wrong with the government's thinking?
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment