There are two evils rearing their ugly heads in economies around the world today. The two evils are rising input costs for manufacturers and higher taxes imposed by some governments on certain goods and services.
Higher costs of any kind and higher taxes on any goods or services can spell a lot of trouble for manufacturers and providers in the long run. Instead of helping these manufacturers and providers to remain in business, some governments are indirectly hurting them through policies that restrict their business progress. Eventually, the workers employed by these manufacturers and providers may face the axe very soon. When ordinary people lose their jobs, it may spell even more trouble for those same governments that are taxing their private businesses in various forms.
Therefore, manufacturers and providers must make a firm stand to their respective governments for supporting private businesses in an uncertain global economic environment. If the private businesses don’t get that support from their governments, they must leave their industries.
Garbage sells well these days.
Garbage is infectious and it can infect all pursuits.
The financial health of an economy is one of those pursuits.
Running a country is like running a household. To run a household continuously, its members must have income from various sources. But members of some households may experience a lot of hiccups to generate decent wages for a decent living. Their standard of living deteriorates. The income from other sources just helps them to tide over their pecuniary difficulties. Wastage is not a part of their lives as they are not in a position to squander their incomes freely. As such, the members of that household must be diligent and resilient to overcome any economic hardship that springs out of the blue.
A government is the administrative institution of the state. The government must ensure that the revenue collected from various sources is put to good use. This is to guarantee the continuous existence of the state. Therefore, it becomes incumbent upon that government to prepare a prudent budget that will help the diligent and resilient members of the state to prosper.
When a country’s annual budget looks more like a handout, the citizens begin to question about the economic status of their country.
Always look at the result of an enterprise. When the result of an enterprise shows nothing real for a long period of time, that enterprise is GARBAGE through and through. Those who promote, support and trumpet garbage are garbage too.
The decades of decadence, economic mismanagement and handouts must manifest somewhere and somehow.
Emerson reminds us that “Things refuse to be mismanaged long.”
Things look rosy on the outside or they are portrayed to be rosy to the outside world. By portraying so, the inner rottenness can be concealed from the outside world.
Some governments run their economies in the same manner too. Only the top echelon in the policymaking bodies in these governments are privy to the actual workings of their economies. The information and the figures concerning the real state of their economies remain at the top.
If the information and the figures of an economy are really good, they can be revealed to the general public and the investors. The economy prospers.
If the information and the figures of an economy are really bad, they can be suppressed or tampered with so as not to create a panic among the general public and chase away the investors. The economy may experience turbulence or even collapse altogether.
What if the information and the figures about an economy keep getting worse by every quarter? No matter how good the members of the top policymaking body in a country try to suppress or tamper with the information and the figures, they will finally have to tell the truth to everyone as hiding that information can trigger something even worse for the economy later on. No matter how good a maestro is in his calling, he still has to admit his failings sometimes.
Governments have an obligation to tell the real truth about the performance of their economies. They cannot keep it under wraps for long. They have to say the truth as it is. If it means the introduction of austerity measures spanning all vocations in the land, massive cuts in operating expenditures and large-scale job cuts, so be it. If the economy needs to be trimmed to stay lean and mean for the long run, so be it.
Get the real picture?