Wednesday 25 April 2012

When I hear people talking about growth in Portugal...

... I realise how deeply rooted is one of the biggest paradigms of the Portuguese economy - that growth is only possible through public investment. This is a deep lie - and a dangerous one. Due to lack of adequate internal and external pressure, usually, the State is actually incredibly inefficient in its investment - and Portugal is actually a ver good example of it.


The main role of the State in an economy should be to provide the adequate framework in terms of laws that allow for a sustainable development of a country's economy, while protecting the best interests of its people. It should additionally incentivise and protect foreign trade, invest in major infra-structures that provide additional necessary support (and here, I include schools, public hospitals, public health insurances, highways and airports with the support of the private sector,...) and should define and implement (through taxes and limited subsidies) an economic and welfare strategy (I am only refering to the economic role of state, let's not include here Justice, Health, Education, Security and Safety, Culture,...). Additional investments are proven to be inefficiently sustained by an excess of taxes.


As so, it is absolutely crutial to actually break the excessive role of the State in the Portuguese economy (where it is actually taking up private space and eating an unproportional amount of resources) and let the private sector generate more efficient growth to its share and stakeholders. And yes, I am a proud liberal - and a very concerned citizen.

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