Costa Rica sinks into the mud of its Fiscal Deficit
The discussion of fiscal deficit in Costa Rica is very limited in scope.
NO ONE is talking about the real cause of the explosion of the deficit: THE FOREIGN DEBT of the government.
Eliminating “luxury pensions” could not contain or end the deficit, which is 50% of GDP when analyzed and compared proportionally with other countries, where the deficit is of 98% of GDP in Spain, or almost 100% of GDP in the United States.
Another point that is not discussed in the inability of the country to increase its GDP to balance out with its deficit.
If nothing of value is produced, it will be very difficult to grow and progress, no matter what the deficit is.
The only thing that remains is to sell INSTITUTIONS such as RECOPE, and the NATURAL HERITAGE, which is what is most likely coming up next.
Those sales, if they take place, would not help improve the situation or increase GDP, because the cash obtained from those sales would fall into the pockets of the new owners, who will probably be foreigners.
The “Ticos” still finance, with their pensions, the State’s debt, as almost 50% of what is saved in those pension funds is invested in bonds of a government that has a deficit of 50% of GDP.
Costa Ricans are in a situation that is already common in most countries, where the government uses pension money to pay for their spending in exchaneg for worthless bonds and the promise that it will return that money with adjusted interests.
You can kiss that money goodbye.
Extrem spending is the reason why why there is never enoigh money to in government coffers and why new taxes are imposed, because the coffers of the State are a black hole without bottom.
Costa Ricans now will be obligated to finance programs for refugees, whose cost will be paid by the same taxpayers.
Former Costa Rican presidents have made numerous calls for Costa Rican people to submit to more taxes.
They, who did not care for the deficit while in the Presidential House, now warn that the “ticos” must accept new taxes, because otherwise, there will be a financial holocaust.
Are they really worried about the deficit an the refugees or are they just hypocrits? I prefer option B, because none of them has proposed that their luxury pensions be eliminated to help reduce the deficit, nor has any of them adopted any refugee.
If Costa Ricans do not defeat these scoundrels, their children and grandchildren will be born, grow and die in the street, while the “experts” will live on the blood of the people all their lives.
No new taxes should be adopted in Costa Rica until the government eliminates all its loans with supranational financial entities, such as the IMF and the World Bank, elimiantes all luxury pensions, reduces the size of the State to the minimum, taxes are levied on multinationals operating in the country, the Central Bank stops manipulating the national currency, and a plan for the production and improvement of the country’s infrastructure, including roads and internet connection, is created.
In Costa Rica it is necessary to produce cars, boats, airplanes, roads, train lines, ports … but above all it is necessary to have more “thinking people” because now there are only obedient ticos, who are easily influenced by ideologies and religions.
Producing only agricultural products is not enough, unless it is for subsistence because China produces at a much lower cost.
But in many aspects, the country does not even produce what is consuming. You must have industry.
RECOPE does not refine the fuel consumed in the country, it exports it to be refine because it does not have capacity. You must have that ability to do so.
The construction of a road to the northern region of San Carlos has been delayed for over 40 years.
With the production of software and hardware, the money goes away from the country because taxes were not levied on this production and the salaries paid to the professionals are extremely low.
Costa Rica must eliminate taxes that only maintain the current state of conformism and pandering. Only after that will the country begin to grow and be prosperous.