Wages and the economy
What else do you need to prove anti-national activities of the economic block of the government?
The Ministry of economic development of the Russian Federation proposed to overcome stagnation in the economy by reducing real incomes of the population and limit the growth of wages during the crisis, thereby reducing the purchasing power of the population. This is one proposal, which was discussed in the government.
On 6 may, the economic development Ministry issued a revised draft of the macroeconomic forecast for 2016-2019. The plan involves limiting the growth of salaries in the years 2016-2017, the reduction in real pensions by 4.8%, with compensation only on the level of inflation, followed by compensation in 2018-2019. The Ministry Alexei Ulyukayev believes that such measures are necessary for recovery from the recession and growth of GDP of 4.5% by 2019. In the Ministry have no doubt that such measures “will increase the number of poor from 13.1% in 2015 to 13.7% at the end of 2017, with a peak in 2018 at the level of 13.9% and a real return of income and the number of poor by the year 2015 to 2019”. Assume also that the reduction in income will be accompanied by accelerating investment growth, the main source of which are corporate profits (!).
It’s hard to believe it’s not a mistake and not a provocation of vicious bloggers that are paid from overseas and trying to discredit the activities of the government. Because such methods do not “cure” the economy, even the most outspoken liberals of the West, which try so hard to be like the speaker, Nabiullina, Kudrin and their associates. The decrease in revenues, also intentional, with the application of administrative methods (!) leads to a decrease in consumer demand for all goods, as daily demand and long-term use. In everyday life this means that if your wallet is getting less money, then you are trying to spend less, for example, food (of course, to buy clothes, household appliances, etc.). Buy less milk, meat, vegetables, and this means that the farmer will not be able to sell the volume of products and will be forced to cut cattle, to sow less grain. Therefore, less demand for fertilizer – and already suffers chemical industry. Less demand on the harvesting technique – problems and added the equipment manufacturers. Less equipment needed – no sense to keep the volume of metal smelting and coal mining. All tied into the production and marketing chains. Reduction of incomes of the population is, among other things, a decline in revenues due to the reduction of the tax base. A reduced budget is even less. And less and less!
In the USA, which seems to pray in the economic bloc of the government, to support the growth of the economy in the most critical years of the crisis in this century it happened that on the streets literally handing out money in order to increase sales of goods, which in turn stimulates the production of new ones. Even in the West there is the concept of “helicopter money”, developed by Milton Friedman in 1969. In accordance with this concept, the Central banks are always able to increase the money supply, so how can reset with the sky printed on banknotes experiencing cash-starved economy.” Goal – the revival of the economy through stimulation of demand. Cutting and freezing of real incomes do not fit any of the theories except the one that leads to the personal enrichment of its authors and behind them the industrial and financial structures. Offer Ulyukayev is still a lot to offer to amputate one leg to save on shoes because you can wear only one Shoe instead of two!
Complete nonsense is the premise of the office of the speaker on corporate profits as the main source of investment growth. If corporations increase profits by reducing payments to its laborers, then why would they suddenly decided to increase investment? Most likely, they will be tempted even to cut the incomes and the profits will once again swim in the offshore! Why bother, if you can ensure the growth of income without much stress?! How can increase the well-being of the country in the impoverishment of the population?! And this, in particular, reduces the internal sources of investment, which finishes off the successful policy pursued by the head of the Central Bank, MS Nabiullina. And to get to external sources, you need to meet the requirements of anti-Russian sanctions – in effect, to capitulate to the West.
It seems that economic policy is controlled not just the adherents of the ideology of the market, and those who seek to bring Russia back into the era of the wildest capitalism and re-apply the methods of primitive accumulation of capital – that seemed to have survived in the 90-ies of XX century.
Instead of nationalization (at least the major productions!) they offer privatization, which only aggravates the crisis. The state not only practice the days of building socialism in the USSR. But even in Western countries, especially after world war II, carried out the nationalization with the aim to overcoming the devastation. Instead of stabilizing (not to mention growth!) income and preserve the standard of living is proposed robbery of the population for the benefit of corporations! Case Gaydar is alive and well.
The Kremlin has not yet heard about the support of such a course. “This is one of the proposals continue the search for points of growth of the Russian economy. The theme of, say, optimization of budget expenditures, is constantly on the agenda. Constantly discussed and the topic of optimization of expenses… So these searches are conducted. While talking about some well-defined position, probably, is not necessary”, – says Dmitry Peskov, press Secretary of the President of Russia.
So what was it? Inspection of the population on the reaction? Smolchu people – get the “original” methods “to overcome stagnation in the economy.” You will lose a sane economists with honor and conscience to prove the absurdity of the ideas of the speaker – so you can do with the people anything for the benefit of corporations. It is hoped that the Kremlin is trying to give a chance to the economic bloc to finally show its anti-people and anti-Russian nature, and to have the moral right, and a legitimate reason to send all of them to resign. But it is rather from the field of positive science fiction.
