As we have been saying, we are at a critical moment for the economy. The actions of many politicians are ignoring the economic reality that we live in and they do not realize – or do not want to realize – that they are causing, with their decisions, a problem of unknown dimensions.
The Government of President Sánchez entrusts everything to the European funds that Spain will receive – for which it will have to comply with a series of conditions in the form of structural reforms, no matter how much the Government denies it – but these funds can not only arrive late, Rather, if these restrictions continue for a long time, with growing economic insecurity and the uncertainty of not knowing if the summer will be normal for tourism, they will not be of much use either, since many branches of economic activity, such as They are commerce, tourism, leisure and hospitality, they may have suffered such a debacle that it is not easy to recover the level of prosperity and employment prior to the crisis in several years. Instead of reforms and allowing the economy to function without restrictions, impose restrictions and increase spending, which will have a short path when it can no longer be increased.
There are two ways of guiding economic policy. One is the one that is committed to carrying out reforms, trying not to interfere in economic activity and drain the least possible liquidity from people and companies with taxes, that is, that taxes are low. In this way, it trusts in creating the structural bases that allow the economy to develop by itself, generate wealth, employment and prosperity, that is, that the economy is sustainable by its own structure.
The other way, which is the one we have now and which, unfortunately, is predominant among many politicians, is the one applied by the left, which has never been very showy in obtaining good results in economics. His economic achievements are usually, with honorable exceptions, inversely proportional to his propaganda successes. It is true that there are brilliant social democrats, whose only problem is that they tend to rely excessively on public spending without fully seeing the negative effects that the expulsion of the private sector entails due to the substitution that is produced by the public sector and in the reduction of the activity derived from the increase in taxes.
Now, those brilliant social democrats, that there are, and I think that the economic vice president is one of them, they can obtain results that are not efficient, but neither that generate an insurmountable disaster. However, the current left, once it has annulled Vice President Calviño and I even dare to say that the Minister of Finance, who despite being very dogmatic has many years of management experience and knows that there are certain things that They cannot be done so as not to endanger the economy, it is a tremendously irresponsible left, and in the economic sphere it is clearly seen.
What it has done with the PGE is a flight forward, where it supplements the lack of growth with promises of spending of all kinds without thinking about the slab of debt it generates, because it really interprets it as a perpetual debt, which, by the way, It was the government’s way of financing under Franco’s regime, with which the socialists and communists applying their own law of rancor, they should banish this practice, which was not positive. They have gone so far as to propose – Podemos and the president of the PSOE – the cancellation of the debt. Faced with such barbarity, Calviño has no choice but to go out and censor said request, but it gives us an idea of where the most extreme part of the Government is going.
The left is thus betting on spending, deficits and debt and, above all, on a subsidized economy, on a sustained, rather than unsustainable, economy. It is sustained because it is artificially supported by public funds, which when they are finished will expose the inefficiencies of the economy and will have entrenched, postponed and, therefore, enlarged the economic problem.
With this approach, the economy is moving inexorably towards conversion into a subsidized, clientelistic and unsustainable economy. This counterproductive management can only lead us to accentuate the destruction of the productive fabric and, with it, millions of jobs, leaving workers and businessmen without any coverage, and thus destroy the prosperity wrought by the Spanish, converting our society in a poor and subsidized entity, incapable of prospering. It is, as I say, the transition from a sustainable economy to an artificially sustained economy. It is the distance between prosperity and poverty, respectively. It is the current radical left’s bid for a subsidized economy rather than a productive economy. It is the most direct path towards the impoverishment of all Spaniards.