The recipe for poverty yesterday

in #politics7 years ago

Russia entered a period of protracted economic crisis, the distribution economy allowed to stay afloat during the years of high prices for hydrocarbons. During this time, GDP per capita increased 4 times.

This was also facilitated by the emergence of new technologies in the service sector: communications, IT and others. But the limit of development was reached in 2012.

The return of Putin, the impasse of the distributive economy, led to a protracted crisis. Attempts to fill it with money through megaprojects put off the problem of poverty, but by 2014, all the same, the distortions of the economy have taken their toll and the consumer market began to fall, people began to rapidly decline.

If according to government estimates the number of poor has increased in recent years from 18 million to 22 million, independent experts say that this is manipulation of figures and the real figure of poor people in Russia is 72-76 million people.

Especially dangerous for society is the availability of working poor people, when, after the birth of one child, the family starts to feel need for two working adults, after the birth of the second, poverty sets in, it is necessary to limit the purchase of clothes, and after the third they begin to save on food, this is a measure of begging.

Economists began to look for a recipe for combating poverty for a long time, many books have been written, but many societies do not use these recipes, but continue to reproduce relationships that generate people's need.

The most terrible deception leading to poverty trap

Left politicians always offer the same recipe for solving the problem of poverty. They believe that it is necessary to strengthen government intervention in the economy in order to guarantee workers wages, preservation of jobs.

This function, for example, in France took over trade unions. It's got to the point that young people under 40 years old can not find a job there.

Not being members of trade unions, they become defenseless and live in poverty. And trade union members enjoy huge privileges, which cost a lot of money for business.

As a result of this policy, on the one hand, poverty is progressing in France among young people, on the other hand, a class of privileged trade unionists has emerged.

Business carrying, losses from social dependency goes to neighboring countries, most often to Belgium, where there is no such distortion. Washing up of entrepreneurs leads to a reduction in the budget pie, young people become even poorer, and trade union members continue to live well.

This creates a vicious circle of high taxes on business, leading to a reduction in jobs. That's why the French chose Emanuel Macron, he proposed to withdraw from this vicious circle through a change in labor legislation.

Can we nationalize all enterprises?

Very bad things are in many underdeveloped countries, including Russia. The poor pushes outspoken crooks and clowns to the political Olympus for left-wing political slogans.

The most striking example - this Zhirinovsky in Russia, he found a simple solution to the problem of poverty: each man in a bottle of vodka, every woman on a peasant.

This slogan was implemented in practice. As a result, over the 20 years of Putin's rule, Russia's population has declined by three million without taking into account the Crimea.

During this time, 15 million people from Central Asia and China entered the country, that is, the loss of the indigenous population was 18 million people. Such damage in peacetime was brought to Russia only by Joseph Dzhugashvili named Stalin during the repressions of the 1930s.

The reason for the depopulation of the population was drinking alcohol surrogates, drug addiction and AIDS, violence in society and immigration of citizens to other countries. Only women were lucky, the influx of foreign citizens helped partially solve the problem of Zhirinovsky.

However, simple recipes can not solve the problem of poverty. During Putin's reign, the problem of poverty was addressed through state intervention in the economy, from tightening regulation, administrative pressure, criminal prosecution, and direct buying up of assets and financing of semi-public - semi-private corporations.

There was a vicious circle: the people demanded to solve the poverty problem, the state began to absorb private assets with fear. Once they fall into the hands of state corporations, they immediately face the problem of inefficient management.

State managers manage enterprises, and the risks are borne by the budget, as a result, nobody who does not need competitive goods is produced. A fork is formed between bloated costs as a result of ineffective management and the market value of goods.

Fearful of the ruin and discontent of workers, the state through a system of bad loans, or directly from the budget pays the difference. Every ruble spent on an inefficient enterprise immediately worsens the situation. A budget deficit is formed through the support of state corporations, they are gaining strength and take resources (labor, land, plants, forests, mines, etc.) from private businesses.

On the last lie the burden of covering the budget deficit. Double pressure, from the side of tax administration and raids by state corporations, leads to an increase in risks for private business, and it is shrinking, along with it, the number of jobs and taxes are reduced.

The number of poor is growing. For example, in 2012, 500,000 criminal cases were opened against entrepreneurs, half of them went to court, the number of lost jobs exceeded 3 million. Of course, the increase in the number of poor people required additional measures from the government.

You will not believe it, but the rake was the same - increasing government intervention in the economy, increasing government subsidies, reducing wages by 10%, increasing the tax burden on businesses, total control over entrepreneurs, even before the introduction of the permitting system.

The result was a bankrupt bankruptcy, as a result - 72-76 million poor people in Russia. During this time, the US population increased by 40 million people, and my sister also went there. And Putin goes on 4 term!

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Very interesting insight, easily digestible and makes you think. Thanks for sharing this, as someone who isn't very proficient in politics, but invested in Russia's fate, this was an enlightening read.

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