Saturday, January 4, 2014

"Pat on the Back Machine" - Patent applied for in Latvia and many places in the USA and around the world

I simply love the writing style for NEWS these days. The Headlines are all about attention "grabbing".

Latvia: The country that fell for the euro

Why do we as reader of all this over-hyped NEWS get so worked up over potentially meaningless trivia?

In my opinion Latvia's future is NOT based on which currency it's folks choose or are forced to use to go about their daily lives.
Also, Please be careful with all your PRAISE on the previous Latvian government.s effort to control overheated spending. Especially comments and praise based on percentage (%) statistics.
Five (5%) percent growth of a small base number is still a VERY small number.
My point is that the "so called Latvian miracle" may NOT be so much of a miracle as the "spin PR machine" is selling to the world who will listen.

photo - Patent Applied for by Latvian Prime Minister and Speaker of Parliament

Concerning the Prime Minister's "miracle" austerity effort., in the process, he has failed to make the tough changes that the country really needs in order to grow and thrive. His toughted successes are nothing more than some tough whacking at the bottom line of the budget numbers without any serious understanding of how the government really operates in it's interactions with the small business community.
Any reference to EURO FUNDS - is / are what monies that are clearly visible to the average Latvian - and that is / are the road infrastructure improvements and numerous building sites that have sprung up - with some still only empty shells or built with faulty designs and materials - soon to crumble.
Further the point should be made that the government's austerity program was nothing more than a bottom line budget cut -- and has failed to understand and IMPROVE the real system of HOW the government operates.
The market in Latvia is tiny compared to many other EU countries and is still shrinking. Even if you quote some percentage increases in certain sectors, a 5% growth of a small base number is still a small number.
In addition, the complexity of the tax system and tax reporting system makes it very costly to operate a small business in Latvia. I personally don't see any mad "rush" to open small businesses that will really add enough jobs to make a difference.
Also, the cost of utilities is very high further complicating the ability of small business to turn a profit and then grow.
Not to mention the continuing exit of capable workforce with Latvian language skills.
Even if Latvians finally accept immigrants to settle in Latvia, it will be a very long time before these new residents obtain sufficient Latvian language skills to really be effective in the business community.
What Latvia has left after all the capable folks have left to find employment, and families abroad is NOT sustainable for future generations.

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