The Government’s triumphalist speech in economic matters It doesn’t hold up. The economic data allows them, in part, to display so-called prosperity, but this does not go beyond the veneer of it, they can even boast of it with the extraordinary revisions which are currently being carried out with a view to three years ago. , but, in reality, draws a very different reality, where the private productive system is in decline in the face of the increasingly notable increase in the public sector, which fuels spending for trying to support an economy which cannot do it alone, because the economic policy applied has left it very damaged from a structural point of view.
Thus, Sánchez’s economic policy, based on public spending, increases them exorbitantly, with a debt that exceeds 1,600 billion euroswith the formation of a medium and long term structural deficit close to 5%. When revenues stop relying on the extraordinary collection of inflation, expenses will remain and the budget balance will deteriorate even more, with the exception of 15,000 to 30,000 million euros – depending on how the quota is calculated -part – that the General Administration of the State with the Catalan concert, will increase the pressure on the deficit with between one and two points of additional GDP.
This increase in spending has made it, in fact, what supports the Spanish economy, aided by the foreign sector, but it cannot alone maintain any productive activitywhich drives away public spending. If we analyze the data, we can see how public spending has increased by 12.02 percentage points in constant terms since IVTR-2019, before the pandemic, while investments, in the same period, continue. 1.3 percentage points lower.
In addition, the legal insecurity generated, the taxes created for certain sectors and the rigidity of work also generate the rejection of foreign investors, so that foreign investments decreased by 1,686.92 million euros compared to the previous quarter. If we analyze the data in relation to Sánchez’s arrival in government -IITR-2018-, then foreign investment amounts to 15,410.86 million euros. smaller than then.
Therefore, the government’s economic policy impoverishes us by putting us in debt to artificially slow down economic development and harms our economic structure by expelling investment and stifling private consumption. These are the results of the government’s misguided economic policy.
