The Spanish economy once again faces the cruel tyranny of the world, which the country’s interventionism insists on ignoring with a contumacy worthy of a better reason.
El offer shock in the wake of the Iran crisis It was influenced by a production structure weakened by interventionism and excessive taxation.
Before the increase in energy prices due to the operation of Furia, the response of the social-communist government is inadequate and schizophrenic.
Schizophrenia is reflected in the Dantean spectacle: there is no government, but two.
In this dysfunctional bicephaly, both sides, socialist and communist, have parity with their own Royal Decree-Ley, working not for efficiency but for truth. it imposes a greater dose of social engineering on a market that only has more air to breathe and try to buy the votes they tell you Goodbye.
In this context, the elimination of indirect influences on energy is the only remedy that points in the right direction.
Hydrocarbon taxation does not only affect household incomes; It acts as an interior orange that shows its origin inputs necessary for industry and artificially increases its production costs.
Reducing indirect energy disputes is the only remedy that is aimed in the right direction
Relieving this pressure is the only way to avoid taxation becoming a supply shock and liquidation haemorrhage for firms.
However, these compensations are insufficient. Reducing one of the VAT points or temporarily suspending the generation of gravamen are only precautionary measures for a patient who needs major surgery.
While the government is responsible for these fiscal mirages, it maintains intact a brutal tax regime on the rents of labor and capital.
This is an old thriller: if you need an infinitesimal fraction of the price available in a light package or in the surtidora receipt when, for example, there is a significantly higher cantida through non-deflation of the IRPF tariff.
When it comes to an effective fiscal presidency, Spanish taxpayers continue to lose ground to the state.
From now on, the other measures are contained in this royal decrees-Leyes duplex Create a guide to building a functioning economy in record time.
The effort to raise prices and introduce subsidies aimed at sectors selected at the discretion of the bureaucrat in question is simply suicidal.
By attempting to “anesthetize” the price system, the government is destroying a vital signal that allows economic entities to adapt to the new environment of the crisis.
The rest of the measures contained in this duplex of royal decrees-Leyes Create a guide to building a functioning economy
If the price does not reflect the reality of marginal cost, the incentive to produce disappears and the cost problem turns into a problem of absolute starvation.
What the Council of Ministers (or until the Shadow Council of Ministers) classifies as a “social shield” is nothing more than a hierro course that prevents the redistribution of the factors of production.
Discretionary transfers and prosecutions with public money only serve to zombieify the economy, artificially maintain inefficient structures with life on the edge of punishment, public life and godless futures in the most dynamic sectors.
Ex the victory of distribution policy over production capacityan infallible recipe for fatigue at Largo Plaza.
The existence of royal decrees-Leyes is a definitive symptom of the decay of the institutional order.
While one part of the government engages in demagogic gesticulation against the “beneficial benefits of heaven” – a concept that stems from a profound ignorance of microeconomics and the workings of marginalist markets – the other is rooted in the bureaucratic maraña of direct aid that, due to cost, transactional and administrative inefficiencies, never reaches the level that production requires with speed.
This legislative duality creates fragmentation of the internal market. The international investor and the national entrepreneur do not come from a plan of coherent stabilization, but rather from an ideological battlefield where the rules of the game change according to the morning pulse of Mars.
Legal certainty, a fundamental pillar of any sustained growth, has been sacrificed on the altar of the balance of power between coalition partners.
The shock of the Iranian bid is an external disaster, but Spain’s vulnerability is really an internal product.
Only a program based on massive deregulation, drastic cuts in public gas and curbing disputes that go far beyond electrical cosmetics could have saved Spain from the marasmus.
Everything that doesn’t happen transfer the main role to civil society and private society It’s pure political theater. The government – of governments – remains determined to believe that prosperity is driven by the BOE.
The reality, dark and cruel, will demonstrate that the state is not the solution to the supply shock; This is actually the main hurdle to overcome.
Legislating against the law of economics will result not in social protection but in collective decadence.
Leave a Reply