Александр Кендюхов, (Chair of All Ukrainian Union of economists) advocates for creation of state-owned corporations that will be export-oriented and work in biotechnology and pharmaceutical industries. To boost their development he suggests:
- get rid of all taxes on businesses including VAT
- introduce a sale tax of 5%
There are several passages that are truly amazing:
"Высвобождаемое в результате сворачивания устаревших индустриальных производств трудоспособное население, не способное к переобучению, получая от государства стартовый капитал, легко включается в малый бизнес" -- it could easily win the prize for the stupidest economic policy ever suggested! An unemployed who can not find a job and who can not be retrained, presumably because he is either a) stupid or b) too old, will supposedly start his own business using taxpayers' money and become a successful businessman. Questions: don't you need at least some very specific ability to develop your own business? what is the likelihood of you having this ability if you can not be retrained to do other job?
"Продукция высокотехнологичного сектора, представленного преимущественно крупным бизнесом, должна быть ориентирована прежде всего на экспорт, малый бизнес — на внутренний рынок. Стимулируется рост внешнего и сокращается рост внутреннего потребления, что увеличивает накопления населения. Аккумулированные населением денежные средства направляются на покупкуакций создаваемых высокотехнологичных предприятий." Very interesting: I save money because the consumption is very expensive and there is nothing there to buy, and the government takes my savings and gamble with it by purchasing stocks in some state-owned biotech company that has uncertain chances of succeeding in its venture.
It is really sad that "ALL Ukrainian economists" suggest these kind of economic policies
1 comment:
By the way this guy is very productive: he has around 195 publications. But it seems to be that all his papers are very similar to this one.
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