Monday 11 July 2011

Too much talk about economic growth

It seems to me that this government is going to commit the same mistake of the former one by conveying the message that resuming economic growth is the way out of the crisis. It is not. Economic growth will not resume in the short run and the debt crisis demands very short run domestic solutions. All the talk must be focused on the adjustment of expenditure, private and public. However, passing on that message is very hard for political leaders and for a people that have lived (and were educated) in an age of prosperity and high public spending growth.


  1. Instead of just talking, Portugal should walk the walk of economic growth, so far the only way out of the crisis in the mid-term. Please, don't feel obsessed with the short-term. Especially the younger folks should make today what they know is good for the future, not just to appease the "markets" tomorrow morning! Don't let them beat you. Of course, some balances must be restored now, but don't lose sight of the future! Don't let them crush you: fight back doing the right thing for the country in the short and long run! As for the politicians, they are known for usually not thinking about the far future, only about next elections. Not the other way around as you seem to be picturing them! Finally, OK let's cut our spending and help the public authorities do some spending cuts too, but above all let's be more productive and optimistic.

  2. My point is that the talk about economic growth in the current context is just another form of delusion. An European Union solution is another one. There is no way (that I can grasp) out of this crisis involving no pain. Of course I agree that a lot of action (and thought) on economic growth is needed.