Less Government More Market

Costa Rica is beginning to suffer the consequences of a Keynesian policy applied by the government to lessen the effects of the economic crisis.

Monday, October 4, 2010

"If there are no jobs in the private sector, let the State offer them. It is a simple remedy and especially beneficial for political parties in power as a tool to win votes and stay in power.”

The problem is that these jobs, often artificial, must be paid by taxing the private sector which must in turn tighten their belts, reducing costs, which begins normally by reducing personnel.

Juan Carlos Hidalgo, on his blog at Elfinancierocr.com, discusses this issue, along with other problems being faced by the private sector in Costa Rica, like uncertainty about currency exchange, the excesses of government red tape and differences in treatment of national investment as compared to foreign investment.

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