Inequalities

Socio economic policy improving the economics

The problem is insufficient production. The solution is strong property rights and contracts that can be enforced by courts in which every citizen has equal access. Of course, there are other conditions that are essential including low and stable inflation.

In the context of the above considerations, the following question is also current:

Does the housing policy based on the state-supported construction of affordable housing for citizens and the system of family-friendly benefits paid to raise fertility in society as part of social policy are good instruments for pro-development socio-economic policy? In a situation of well-managed public finance, in a situation of a balanced state budget, whether the low level of national finance debt can be developed on a large scale, the aforementioned housing policy and social policy? In a situation of well-managed state finance and current economic realities, can a large-scale state-supported housing policy and social policy be promoted on a large scale in order to improve housing and living conditions, raise the income and financial situation of citizens? Can this kind of pro-development social and economic policy be a good solution to the situation of a decline in economic activity and the cyclically slowdown of the country's economic growth?

Please reply

I invite you to the discussion

Thank you very much

Best wishes

Similar to universal health coverage, there must be universal housing coverage (Might be some day, that will be reality; life will be more easy for many).

" Parts of Europe have passed legislation that will require all new buildings built after 2020 to adhere as closely as possible to net-zero energy designs. Spanish architecture firm EZAR and architect Juan Blázquez demonstrated the potential beauty of such designs through the CSI-IDEA Building in Málaga, Spain, which has a green face and generates more energy than it needs to run"

( https://inhabitat.com/lush-green-walls-sandwich-pioneering-net-zero-energy-building-in-spain/ ; by Lacy Cooke).

Dear Friends and Colleagues of RG In view of the above, it is also important to include in the above discussion also the following issue:

What are the current concepts of active, post-Keynesian, anti-crisis socio-economic policy?

Please reply

I invite you to the discussion

Thank you very much

Best wishes

In addition, I propose the following research question in this area:

Does housing policy, including the policy of activating the development of the real estate market, housing, including the construction of new housing, housing estates, do you think is an important part of the socio-economic policy of the state?

Please reply

I invite you to the discussion

Thank you very much

Best wishes

In general, I would be wary of industrial policies. The bureaucratic state has a propensity to identify particular industries (e.g., dairy, health care, housing, etc.) and regions to favor (i.e., paying industries to locate where they are least efficient). Ultimately, the inherent subsidies will be used against you in political battles if you ever try to end these pernicious practices. Why is university education so expensive in the United States? One of several reasons is that subsidies have spawned legions of administrative assistants. Everyone needs an assistant. Assistants need assistants. Why is health care so expensive? One reason is the state intervenes to diminish competition. For example, hospitals may be discouraged from buying PET scanning equipment, because a nearby hospital has such equipment. The government patent system is utilized to make medications expensive. And so on.

Dear Colleagues and Friends from RG,

The above discussion inspired me to the following considerations:

After the global financial crisis of 2008, in many countries interventionist counter-cyclical, pro-development socio-economic policies were used, with simultaneous use of instruments of active fiscal policy activating economic entities and monetary policy applied by central banking increasing liquidity in the banking system. In this way, active economic policy based on Keynism, known since the 1930s, has been enriched with new instruments or the same instruments enriched technically, systemically and with the involvement of much larger financial resources from public finances. For decades, this type of approach has become a standard in many developed and developing countries. However, in order to be able to pursue an active, Keynsian or post-Keynesian socio-economic policy, it is necessary to have a good state of public finances, i.e. low public debt and a budget deficit if in a given business cycle situation it is not possible to generate a budget surplus.

Thanks to technological progress and increasing production, the standard of living of the citizens is rising and the possibilities of pro-social, active social, socio-economic and housing policy are increasing. The possibilities of applying this type of socio-economic policy, including housing, and implementing pro-development economic functions are usually greater in highly developed or technologically fast developing countries. Contemporary interventionist socio-economic, fiscal, monetary, etc. policies enable active housing policy as interventionist, post-Keynesian, anti-crisis, activating consumption and economic activity. When applying an active housing policy, new apartments are built, housing estates available to citizens of the middle class, achieving average and lower incomes. Active anti-crisis, anti-cyclical, post-Keynesian housing policy applied in the situation of a progressive decline in the economic growth rate and a change in the scope of implementation of this socio-economic policy in the context of the cyclical nature of economic processes taking place in the long-term cyclical nature can significantly reduce the scale of the recession. However, during the recession of the national economy through the use of active anti-crisis, anti-cyclical, post-Keynesian housing policy. Fiscal instruments are one of the key determinants of the use of housing policies that stimulate economic processes, and good public finances are essential, i.e. low public debt and budget deficit if it is not possible to generate a budget surplus in a given business cycle situation.

In highly developed countries, where due to technological progress and growing production, the standard of living of citizens increases and the possibilities of implementing pro-social, active social, socio-economic and housing policy are increasing.

Contemporary interventionist socio-economic, fiscal, monetary, etc. policies in highly developed countries allow their use, i.e. socio-economic policies as interventionist, post-Keynesian, anti-crisis, activating consumption and / or entrepreneurship and innovation in the situation of a progressive decline in economic growth and change the scope of implementation of this socio-economic policy in the context of the cyclical nature of economic processes that take place over many years. Activation of entrepreneurship and innovation can be one of the elements of interventionist socio-economic policy. One of the key instruments of this policy are fiscal instruments and a good state of public finances is necessary, i.e. low public debt and budget deficit if it is not possible to generate a budget surplus.

Contemporary interventionist socio-economic, fiscal, monetary, etc. policies in highly developed countries allow their use, i.e. socio-economic policies as interventionist, post-Keynesian, anti-crisis, activating consumption and / or entrepreneurship in the event of a progressive decline in economic growth and changes in the scope of implementation of this socio-economic policy in the context of the cyclical nature of economic processes that take place over many years. However, due to the growing public debts, the aging of the societies of the most developed countries, the rising costs of civilization progress that will have to be spent on ecology and the reduction of the growing income disparity between the richest and poorest countries, the possibilities of applying socio-economic as interventionist, post-Keynesian, anti-crisis, activating consumption and / or entrepreneurship in a situation of a progressive decline in economic growth.

The widespread opinion is that if the state did not launch anti-crisis programs of state interventionism in the situation of the emerging major global financial and economic crises, such as during the 2008 global financial crisis, the scale of negative economic and financial aspects of such crises would be many times larger. Then it could lead to an institutional, political and organizational crisis, a lack of citizens' confidence in financial institutions and state institutions, money would lose its economic functions, a deepened multi-faceted crisis of developed economies would appear, and there could be a risk of collapse of the capitalist system.

In view of the above, I am asking you the following question:

However, can it happen that during the implementation of a specific model of Keynesian socio-economic development policy, such mistakes can be made that instead of balancing the national economy, there will be an increase in systemic credit risk and, as a consequence, another financial and economic crisis may be generated?

What do you think about this topic?

What is your opinion on this topic?

Please reply

I invite you to the discussion

Thank you very much

Best wishes

Dariusz Prokopowicz

Are there analogous pro-development socio-economic policy programs, including housing, similar to the Apartment Plus Program in your countries?

The SARS-CoV-2 coronavirus (pandemic Covid-19) pandemic has had a major impact on the economy, including the economic and financial situation of citizens professionally active in those sectors and branches of the economy that are most affected by the economic downturn. On the other hand, large investment projects carried out and financed by the state from public finance sources constitute an important element of anti-crisis socio-economic policy. As part of the aforementioned anti-crisis state interventionism, large strategic investment projects involving the construction of new communication arteries, new power plants, renovated infrastructure facilities of the public service sectors, etc., as well as the construction of new housing estates with partial state financial participation can be implemented. In this way, the housing conditions for citizens can be significantly improved and many new jobs will be created during the construction of these settlements, which will improve the economic situation and this may be an important element of anti-crisis socio-economic policy. An example of this type of anti-crisis and pro-development instrument of interventionist socio-economic policy, including housing is the Apartment Plus Program (Mieszkanie Plus Program), which I described in my publications available on this Research Gate website.

In view of the above, I ask the following question:

Are there analogous pro-development socio-economic policy programs, including housing, similar to the Apartment Plus Program in your countries?

What is your opinion on this topic?

I am asking for an answer and invite you to a discussion,

Thank you very much and best regards,

Dariusz Prokopowicz

Inequalities