Does anyone else feel the same? That we are just peeing against the wind of reality here? During these times when banks, real estate businesses, and car industries are about to implode the guys at the top who should have all the know-how about the basics of economics are screaming louder and louder for regulation, government bailout plans, and that it is a good-idea that tax-payers should own industries.
However, some of us urinate in the right direction. The Swedish associate professor in economics Bengt Assarsson, gives us today in DN (Swedish newspaper) “alternatives” to these other sc. “solutions”. Briefly, he put forward suggestions on how to help the Swedish car industry without bailing them out. Johan Norberg has also been on to something alike when debating the US bailouts. One suggestion that I personally thinks protrude the most is that we should do away with the VAT tax on car sales.
It says itself that this is a much better way to help the industry (a drop in prices will increase the likeliness of people buying new cars) rather than bailing them out (shoving the problems onto future generations and (possibly) increasing the income tax).
Instead of listening to sound people like Assarsson, politicians seem more keen on today to adapt some outdated Keynesian doctrine from the dust-laden 1930s. It’s a real shame.