Prices, Costs and Excise Duties: What’s What?
Inevitably, in any tax analysis, we would refer to prices and costs, salaries and production, prosperity etc. It is well known, although ultimately unjustified, the opinion that increasing indirect taxation, especially excise duties, will be reflected by prices and, further on, by inflationary escalations. This is the recent situation of the debate on the 7 eurocents that will be added to fuel excise
The Romanian economy is almost built around the state budget
Fiscal policy does not need to solve only the quantitative and, often, circumstantial problems of the budget, as it happened, unfortunately, until now, but rather to solve structural, profound problems of the economy. At the same time, in my opinion, structural reforms should mean more than professionalizing the management and cleaning the SOEs sector. Consolidating the
The crisis and the capitalism – from Marx to the “smart boys” on Wall Street
Before pretending to display economic realism, especially in the context of the recent economic crisis, left-wing politics should, first of all, understand the fundamental problem of the state, that is “to see” its natural, inherent limits. Because, as Ludwig Erhard, an artisan of Western Germany’s post-war revival, said, “the government is not a cow that is fed in Heaven and can be milked
Ideas are the ones that really run the world
Who runs the world – economics or politics? Both of them, or neither one especially. Both economics and politics have their own facets. We must think about a re-evaluation, from a scientific point of view, of the idea of “politics” as something omnipotent that solves anything and satisfies everybody, without costs and sacrifices. Economists would say that, logically, something like
The government does not need to do only what it is allowed by the fiscal framework, but it must adapt this framework in order to do what the economy needs
Economic liberalism is implemented not only through writing, but also through putting the economic logic into the equation of political decisions, and this does not necessarily or explicitly mean political action. But, in this equation, it is important how much of it is economic policy, and how much is politics about the economy and, sometimes, thanks to the economy. There exists a certain type
