Why the Economic Crisis exists?
February 13, 2016
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In my view, the Economic Crisis exists because of a few major factors:
- Importing cheap products from China. If the European workers wants to keep their job, they have to work for 200 Euro / month, like the Chinese workers do. International free trade is good, but every country must have some degree of protectionist measures in order to maintain the jobs into the country. Instead of buying everything from China, Europe should invite the Chinese companies to produce things in the Europe, using European workers
- Fiscal paradises, which allow the rich and the super-rich to do tax evasion. They have trillions of US dollars saved in the fiscal paradises. See Offshore leaks.
- No control of speculation. Any capitalist system must make sure that the prices of commodities are in the reach of the many, otherwise the system simply can’t work. Usually that can be achieved by ensuring real competition between companies, but sometimes more actions are required. The prices of the real estate properties exploded, driving the people into poverty. The government has to either force the players to keep the prices under a certain levels or to rent houses/apartments itself. In order to make sure that the people can afford to pay the rents/mortgages for their flats.
The Economic Crisis has a cause, and the cause is that the governments are not doing anything to protect their people. They refuse to put in place the rules that can keep the economy working.
Unfortunately, the public is not aware of such things and it’s not putting pressure on their governments to change the situation.