Without a Fiscal Solution, Only Productivity Could Move the Economy

 

Simplification of procedures, a new law on public employment and promotion of tourism, part of the answers

Without a fiscal solution, the government will have to study how it accelerates its plans to reactivate the economy.

Creating the conditions for entrepreneurs to produce more and better in an environment of clear and operational rules of the game is necessary.

Thus by boosting production and productivity, it could collect more taxes, but this is only done by leaving uncertainty behind.

Accelerating the economic reactivation plan presented by the Carlos Alvarado government at the beginning of September will be a priority, especially to generate confidence and an acceptable business climate for investment.

Issues of simplifying procedures, reviewing social charges that increase costs, improving Internet access, unlocking working capital credits, attacking smuggling, tax evasion and avoidance, will be priorities.

Today these obstacles or factors mean that a company that acts by law cannot compete in equal prices with respect to others, promoting "dumping" and unfair competition.

In the Medium Term, It Is Important To Better Direct School

College and university training towards current scientific trends and new technologies applied to production and innovation.

The execution of infrastructure projects stranded and already financed by the inability to carry out expropriations is another thing that must change.

Normally, when growth is low, the government could have an expansionary policy, with spending increases and tax cuts; however, that is not valid at a time when the country faces a dramatic fiscal and financial crisis.

For example, with a deficit that, without measures, could reach 8% next year, it would mean that the Treasury would have to put pressure on financial markets to finance those eight additional points of public spending for which current income is not enough.

This would trigger interest rates, having a very negative impact on economics tuition growth, since it would be difficult for companies to invest with high interest rates.

The same could be said if the crisis unleashes an inflationary spiral and a loss of the value of the colon.

In Addition, Other Factors Are Added

As long as the economy continues to decline, international interest rates increase, and oil slightly higher, there will be no plan that fully solves the problem.

The tasks are specific, it is only a matter of executing them, so that the business climate improves and thus the economy moves more.