6 05 2010

Recent reports on the economic situation in Bulgaria have led a lot of influential economists to express diverging views from that of the government. They tend to pointlessly note that the fiscal stabilization of April is due only to the traditionally strong results every April, that the unemployment has fallen only due to seasonal reasons and that this Government is, in fact, spending more money in Q1/2010 than the old one in Q1/2009.

Those are all facts. As we all know – facts are only there to obscure the truth, and to provide a valuable weapon in the hands of all those little, malignant, despicable people in opposition to our new order.

There is no reason that comparisons with last year are any more meaningful than comparisons with any other random period of time. With this in mind, let me go through some indicators:

>> Some people have wrongly noted that unemployment is high compared to this period last year, despite the economy supposedly going out of recession. This may be the case, if you compare to 2009; if you however take 1997 as the base year you will see that unemployment has in fact fallen from 14% to about 10%. A clear indicator of the economy booming.

>> The argument that this Government has been increasing the taxes is deeply fallacious, too. They have recently decided not to let VAT go above 20%, which when compared to the 22% in 1998, means that the Government has, in fact, decreased the VAT. Decreased by 2%, exactly as promised in their election program.

>> Pesky people looking at hard data, instead of watching TV, have noted that over the last three months (Q1/2010) the Government has spent 957 million more than the old Government in Q1/2009. Well, this might very well be the case, but through a re-revision of the Budget through a djanalytic approach, it will so happen that the new expenditures were contracted in 2008 and will therefore increase the deficit then. It turns out the old Government spent it all, without even knowing it!

As has become readily apparent from the examples above, the smart use of the elegant but sophisticated methods of Djankonomics can lead to surprisingly positive results about the economy. We can but humbly hope that this new strand of science will soon permeate the global financial markets, too.




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