20 SEPTEMBER, PRINSJESDAG: DUTCH NATIONAL BUDGET FOR 2023
GET YOUR PRIORITIES RIGHT!
Pennies, pennies, pennies?
No, the people and our future first!
Governing is a matter of choosing between priorities.
In
recent years, the Netherlands Cabinet have opted for reduction of
public expenditure, reduction of public investment and reduction of
income and corporate tax.
The most recent figures are:
Government debt to GDP (EU threshold 60% of GDP)
March 2022 50.7%
Dec 2021 52.1%
Dec 2020 54.3%
Budget deficit to GDP (EU threshold 3% of GDP)
Dec 2021 2.5%
Dec 2020 3.7%
Government spending by GDP
Dec 2021 46.6%
Dec 2020 47.8%
The result?
Public pension benefits are not adequate
Healthcare cuts = public care is in a mess
Cuts in education = education is in a mess
Infrastructure cuts = roads and rail are in a mess
Police cuts = problems with public security
But, defence budget (before the war) = increased
Budget deficit is nothing but debt shifted to future generations.
But, what future will there be for the next generations?
Remember the lessons of Lord Keynes in the 1930s.
Or, look at the models of gross domestic product, economic growth and demand.
The costs of higher government investments and pensions are mostly repaid by:
1. Higher income tax revenues,
2. VAT on higher expenses,
3. Higher growth,
4. More jobs,
5. Additional investments,
6. Higher profit, so higher corporate tax revenues,
7. Higher dividends, so higher dividend tax revenues.
And, 1 to 7 again.
BUT, THE DUTCH PREFER TO GO ON HOLIDAY AND TALK ABOUT FOOTBALL IN THE PUBS!!!
P.S.
GDP
(gross domestic product) is the balance of the national account: the
total value of households' consumption and the investments by companies.
In
fact, the Keynesian identity holds Y = C + G + I + (X - M), where Y is
GDP, C is consumption, G is part of government spending or final
consumption, salaries and public investment, I is the private
investments, (X - M) is the trade balance or the balance between exports
(X) and imports (M).
Aggregated demand (AD) is the sum of
household final consumption expenditure (C), business investment (I),
government expenditure (G) (government and public administration) and
the difference between exports (X) and imports (Q) of goods and
services.
COMUNICATO DELLA PRESIDENZA DELLA REPUBBLICA A SEGUITO DELLE DIMISSIONI DI MARIO DRAGHI © Paolo Bolzoni, 24 luglio 2022. Oggi, 24 luglio 2022, i membri del nuovo Consiglio dei Ministri hanno giurato fedeltà alla Repubblica ed alla Costituzione davanti al Presidente Sergio Mattarella. Per fronteggiare la tragica emergenza seguita alle dimissioni di Mario Draghi il 21 luglio 2022, il Presidente Mattarella ha scelto tutti i Ministri senza perdere tempo in inutili consultazioni con partiti ormai trasformati da miopi in ciechi. Solo i Senatori a vita sono stati invitati per piangere insieme ed a consolarsi con un buon grappino. Tutti i Ministri NON sono membri della Camera dei Deputati o del Senato della Repubblica, e non sono iscritti a partiti politici. Tutti i Deputati e Senatori hanno approvato senza fiatare. Al termine della cerimonia, il Presidente Sergio Mattarella ha dichiarato:
“Per la prima volta nella storia della Repubblica, tutti i ministri sono persone competenti, esper...
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