The Hungarian economic policy has failed and is driving you crazy - the former finance minister told Klubrádio in the first week of January. He also spoke about the importance of cooling the economy as a means of fighting inflation, forgetting that the government postponed investments worth HUF 350 billion and prematurely reduced the budget deficit.
The politician criticizing the shortage of professionals also forgot that it was the current government that built Hungarian vocational training, which the opposition tried to attack with all means.
The economy is not beer, but Bokros would still cool it down
According to Bokros, when the economy grows by 6 percent, it is completely unnecessary to pour oil on the fire of the economy: it should not be heated, but cooled, stated the minister of finance of the Horn government.
Analyzing the current conditions according to Bokros, it is not only about the incredible price increases, but also about the lack of goods, about the fact that in Hungary it is not possible to find normal plumbers, electricians, gas fitters, masons, because either they have gone abroad or they are working at home "as a result of such an immeasurable demand in the construction industry, which can't keep up with supply. In an economy where the capacities are fully utilized, where there are no tools, no machines, no workforce, it is unnecessary to pursue an economic policy that encourages further growth, rather the economy should be cooled and the financial balance restored," said the former head of the ministry. (In another article, we will deal with the fact that it was the left-liberal experts who tried to attack the strengthening of vocational training with all means.)
Public finances are normalizing even faster than planned
The brainstorming of the theoretical expert just did not address the fact that the government had already indicated:
It is postponing HUF 350 billion worth of investments so as not to fuel the economy unnecessarily.
Moreover, the Hungarian government also announced that
it will reduce the 2022 budget deficit even faster than planned, to 4.9 percent instead of the originally agreed 5.9 percent.
The Bokros disaster is light years away
The politician who mentioned inflation and the public budget deficit did not mention that during the Bokros package, which brought historic austerity, inflation of around 7 percent was not associated with growth of around 7 percent and unemployment below 4 percent, but inflation of 30 percent, with growth below 2 percent and 10 percent with unemployment above.
The years of the Bokros package were the most destructive period in the Hungarian economy since the system change.
Nevertheless, Bokros talks about the fact that Hungary, which has been catching up with its region in recent years, is pursuing a flawed and maddening economic policy.
Based on the statistical indicators, however, the current economic policy drives Bokros crazy at best, because even without austerity, it achieves incomparably better results than those seen in the nineties.
Source: mandiner.hu
Featured image: MTI
