Certain Economic Truths A Politician cannot be Caught Dead Saying: 🧵
1. “There's always going to be a portion of the labor market that will be unemployed at every point in time”
It’s called natural unemployment. Even in the healthiest economies, people change jobs, industries shift, and skills mismatch.
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1. “There's always going to be a portion of the labor market that will be unemployed at every point in time”
It’s called natural unemployment. Even in the healthiest economies, people change jobs, industries shift, and skills mismatch.
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2. Inflation isn't always bad, and could be necessary to grease the wheels of capitalism.
Moderate inflation keeps money moving, makes debt easier to manage, and prevents wage stagnation. Zero or negative inflation can stall growth, as it would mean demand is failing or stagnant.
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Moderate inflation keeps money moving, makes debt easier to manage, and prevents wage stagnation. Zero or negative inflation can stall growth, as it would mean demand is failing or stagnant.
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3. We will never be able to pay up all our debt. There's no plan to eliminate debt, but to reduce/manage it.
Governments roll debt indefinitely. The real issue isn’t the number, but sustainability, interest payments, and credibility.
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Governments roll debt indefinitely. The real issue isn’t the number, but sustainability, interest payments, and credibility.
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4. Tax cuts may not increase your disposable income.
The benefits often flow to the wealthy, while reduced government revenue can mean higher prices, weaker services, or new taxes later.
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The benefits often flow to the wealthy, while reduced government revenue can mean higher prices, weaker services, or new taxes later.
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5. “Strong” currencies aren't a sign of economic strength
They can make imports cheaper, but they hurt exports and domestic industries – all things being equal. A balance is healthier than an overvalued currency.
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They can make imports cheaper, but they hurt exports and domestic industries – all things being equal. A balance is healthier than an overvalued currency.
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6. Subsidies, Healthcare, or Education are never and will never be “free”.
Someone pays, either through taxes, debt, or a reduction in real disposable income (inflation). The real debate is who is paying what, what is being paid for, and how efficiently it’s spent.
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Someone pays, either through taxes, debt, or a reduction in real disposable income (inflation). The real debate is who is paying what, what is being paid for, and how efficiently it’s spent.
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7. GDP growth doesn't mean your lifestyle will improve.
Growth can hide inequality, poverty, and declining quality of life. Rising GDP ≠ better living standards for all.
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Growth can hide inequality, poverty, and declining quality of life. Rising GDP ≠ better living standards for all.
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8. Foreign investment isn’t a favor, it's just business and there aren't emotions attached to it, no one cares how you feel about a company leaving or entering into the local market.
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Capital inflows are about profit, not goodwill. Investors come because they expect returns, not because they want to develop your country, if they leave it's because they see no value proposition in continuing operations within a particular economic territory.
✍🏾 By @Muhammad_Okoye
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[Please do follow and join the community 🙏🏾]
✍🏾 By @Muhammad_Okoye
9/9
[Please do follow and join the community 🙏🏾]
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