Petőcz Kálmán (szerk.): National Populism and Slovak - Hungarian Relations in Slovakia 2006-2009 (Somorja, 2009)
Zsolt Gál: Argentina on the Danube - Populist Economic Policy as the Biggest Enemy of Sustainable Economic Growth
Zsolt Gál science: 1. Anti-market bias, i.e. a tendency to underestimate advantages of market mechanisms, Paraphrasing Schumeter, it is an “indestructible prejudice that every action aimed at creating profit must be automatically anti-social”, 2. Bias against cooperation with foreigners, i.e. a tendency to underestimate advantages of cooperation with abroad. For instance, it is the myth that international trade is an equation with a zero total, i.e. the profit of one party inevitably amounts to the loss of the other, which gives birth to protectionist views. 3. Fervour to preserve jobs, i.e. a tendency to underestimate advantages of production rationalization through reducing workforce. Where voters sec “destruction of available jobs”, economists see growth in labour productivity, i.e. the foundation of economic growth, efficiency and competitiveness. 4. Pessimism, i.e. a tendency to exaggerate economic problems and underestimate the benefits of functioning market economy. Voters are often convinced that they earn less and live worse than before and that they will be even worse off in the future despite objective facts on improving the standard of living (Caplan, 2007, pp. 30-49). 17 Public opinion polls were carried out on a representative sample of respondents. The indicator of paternalism was their endorsement of the following assertions: “Government should strictly control prices”; “Government should be responsible for people’s jobs and standard of living”; “The mosl important companies should be run by the state”, but also preferred type of economy, perception of small privatization and their response to the question of “to what degree was it inevitable to change the economic model from before 1989?” The indicator of egalitarianism was their endorsement of the assertion of “Income disparities should become smaller” and their opposition to the assertion of “It is correct that qualified employees should cam much more than others” (Krivý, 2001, pp. 298-299). 18 Jacking up direct taxes may encourage tax optimization, creative accounting methods, transfer of tax subjects into grey economy or abroad and - last but not least - threatens to conserve employment at low levels. Jacking up indirect taxes may cause mass shopping tourism to neighbouring countries. Neither of the two measures is therefore bound to bring a desirable effect, i.e. significant increase in the state budget’s tax revenues. 220
