Day after day I read in the pages of this newspaper with deep disappointment the statements of all our politicians in the face of the current economic crisis and confirm that, after nine months since the beginning of it, have not taken any effective action to resolve it.
To date, politicians have limited themselves to injecting huge amounts of money into the banking system, through auctions at ridiculous interest rates, helping them to get out of a compromised situation where they got themselves and allowing them with everyone’s money. they continue to make great and immoral benefits and, on top of that, they excuse themselves in late payment to lend money to companies and individuals to abusive types. In addition, they threaten that their solvency is linked to ours, that is: if they go bankrupt, they go with our savings (those of those who still keep them).
I think that if our politicians decided to take the following five temporary measures, they could reactivate the economy:
1st: Suspend liquidity injections to banks . If they run out of liquidity, they sell their assets at market price with the strict supervision of the Bank of Spain Inspection and, if they fail, it is the State that, at its book value, buys that entity and guarantees the money of the depositaries.
2nd: That the Bank of Spain, supported in the management by the super- efficient Tax Agency , directly lend the money, at real market price, to companies and individuals.
3rd: Eliminate 7% VAT on the purchase of new housing and drastically reduce the registration and notary fees of these operations. Sales in this sector are close to a 50% decrease and this drags its immense auxiliary industry, both directly involved in the same construction (cement, steel, transport, etc.) and the indirect (furniture, appliances, textiles, etc.). Reducing the final price of new housing and improving access to credit will increase the sale and, therefore, the state will not suffer reduction of income, since the loss of 7% of VAT would be offset by the increase in collection of such tax in the auxiliary industry.
4th: Similar measures can be used to recover the sale of cars or, even easier, to imitate the plan to foresee that Germany has been applying successfully for several months.
5th: With more than four million unemployed and, I hope wrong, maybe five after the summer, the labor market should be urgently relaxed or, at least, temporarily allow the new hiring of newly incorporated workers and unemployed workers to have a dismissal cost similar to that of our partners in the European Union .
To the very unfortunate situation of people who are unemployed join other dire situations: on the one hand, the enormous economic effort involved in the payment of unemployment benefits; on the other, the logical decrease in consumption by these unemployed, which accentuates the crisis; and finally, the threat of disruption of social peace, since the subsidy is not eternal and people need at least food and shelter.
I think that with these five measures would be enough to get out of the current crisis . However, they will only be a patch in the short term, because to solve our problems definitively, two more things are urgently needed. First, an independent Justice that works quickly, effectively and transparently. It is the only real system for people, including public officials, who commit a crime or breach a contract, of whatever kind, to have the certainty that society will force them to repair the damage they committed.
And, second, but perhaps this is the most important measure, we must modify our scale of values and reinvent the educational system , especially in primary education, so that children naturally assume as the main virtues of the people who must Be above all honesty, kindness and effort culture.