Editorial: At the push of a button

18:34 2/6/2019 - Πηγή: Τα Νεα

One cannot reform an economy at the push of a button.

That was confirmed very recently when the VAT on the Greek restaurant industry was slashed from 24 percent to 13 percent.

Instead of the consumer benefiting from the cut, entrpreneurs hiked their prices to reap the benefit for themselves.
For some of those businesses the motivation was simply greater profit.

Undoubtedly,

many in the industry had faced insufferable pressure from tax and insurance contribution hikes over the last several years.

That pressure naturally is not confined to the restaurant industry.

The entire economy has fallen victim to the over-taxation that the government consciously chose in order to collect funds for electoral handouts at the end of its term.

The government chose the disastrous old-party route of political clientelism.

As the ministers involved in economic planning conceded in Parliament, the main victim of this strategy was the middle class.

It took an electoral trouncing in the 26 May European Parliament, regional, and municipal elections for the government to realise that its strategy was both economically and politically counter-productive.

It appears, however, that it is far too late.

Just as an economy does not change at the push of a button, so, too, the disposition of the electorate cannot change overnight.

It takes very much more.