Even now, we can observe not only a real economic crisis but also an intellectual struggle between various groups with material interests. To claim that a growing national debt is something bad and undesirable is to claim simultaneously that economic activities must be stimulated via the private sector. The state must not implement direct investments, but it may offer tax relief, guarantees or other forms of subsidies. Money is created out of thin air in any case, but it resides not on the public, but on private balance sheets. From this perspective, every social and material need can be provided by the private sector – it just needs to be allowed to operate. The state may compensate for so-called "market failures", but nothing more. However, proponents of this view do not comment on the already substantial volume of private debt obligations. They avoid the question of depressed levels of demand. They do not see the contradictions and hypocrisy in their rhetoric regarding the "free market" alongside their requests for state support and stimulus. Because, you see, if the state builds something itself, it is "market distortion", but if the state subsidises private sector activities, then everything is as it should be.
Latest articles
Poll
In recent weeks, both in the Saeima and the Cabinet of Ministers, the thesis has been heard once again: “We must act this way, otherwise there will be penalties, infringement procedures, etc.” Often, such a pseudo-argument completely excludes reasonable disputes, discussions, or alternatives, forcing those responsible to make decisions hastily and not always in the interests of Latvia. Why is that?
Old habits are hardening - someone somewhere knows better, let us rely on them
Lack of sufficient capacity or laziness to defend a different point of view
A generation of cabinet officials has been created who are accustomed to accepting rather than delving into matters
This is a serious problem for Latvia for which no solution is being sought. It will probably be all right somehow...



