Rafiq Idris nails it. I 100% agree with his comments. First of all, in case of economic slowdown, the fiscal policy automatically turns expansionary due to automatic stabilizers. Second, this expansionary fiscal policy stance can be augmented by expansionary discretionary fiscal policy as well. If the slowdown is severe, of course, we'll all see expansionary monetary intervention by the Fed and other central banks around the world. The question boils down to finding the optimal combination of fiscal and monetary intervention.

Expansionary fiscal policy. Having stimulus package

Expansionary fiscal policy through increasing government spending or lowering tax. THe magnitude of the effects will be different across different countries.

Or even loose monetary policy

Following

A healthy combination of both expansionary fiscal +monetary policy would do in a time of economic slowth

Rafiq Idris nails it. I 100% agree with his comments. First of all, in case of economic slowdown, the fiscal policy automatically turns expansionary due to automatic stabilizers. Second, this expansionary fiscal policy stance can be augmented by expansionary discretionary fiscal policy as well. If the slowdown is severe, of course, we'll all see expansionary monetary intervention by the Fed and other central banks around the world. The question boils down to finding the optimal combination of fiscal and monetary intervention.

I depends on the country's Economic status, In developing country, Expansionary fiscal policy is a good option to solve the problem!

Absolutely.

it should be targeting with progressive taxation.

I wrote a related paper on the subject. The modern economy is intricately intertwined. Institutional competence(property rights, business freedom, investment freedom,trade freedom,) should also be considered. In particular, technological competence is now a big influence.

I think there is no one way solution for your answer. First you need to analize what socio-economic sistems are you talking about (free market, planificated, socialist, capitalist, comunist)?, second what do you understand for "slowdown" and how that slowdown affect the other variables in the economy. This second step is very important because maybe one policy work for a country but no need to work in other country, that mistake is know as the fallacy of composition. And the third you need to think about is, What are you willing to sacrifice and for what reason? companies, people, banking, consumption, investment, public expenditure. Your question is very dificult to answer.

you know what, there is no single medicinal for economic problems ( like

slowdown in economic growth). First you should know the source and then you will go for policy intervention either through monetary policy or through fiscal policy. It is also possible to use combination of the two but it should be expansionary.

I think it's a big topic so it's better to be more specific, in each country we can apply different policy up to its economy and its conditions.

I don't believe that there's one recipe for all economies.

I think it depends on the cause of slowing economic growth. One solution would be to invest in high technology

Expansionary fiscal policy and tweaking in taxation would be the natural choice. But one must also look at type of slowdown and other macroeconomic situation of a particular country for the point and referred in the discussion. Caution must be made to align & balance with it monetary policy to reduce large ill-effects.

Totally agree!

It all depends of course on whether you believe a post-WW2 economic model predicated on assumptions of infinite expansion is attainable, sustainable or even desirable. I’d recommend Giorgos Kallis’s book on Degrowth (2018) if you want to question some of the underlying assumptions.

'One size fits all' approach will not be appropriate. It all depends on the contexts. A paradigm shift to invest in human capital should be in consideration of policy makers. It will be helpful to overcome from slowdown of economic growth, especially in developing countries.

This is not a simple fiscal or monetary policy issue. First, in order to boost growth, each economy must know growth "stimulators" of the economy and sectors that make resources available to other factors of production for productive use and for consumption.

Secondly, targeted expansionary fiscal policies and tax policies can be directed to those sectors/sub-sectors. In addition, special monetary policy, through special interest rates, can be granted to these sectors. In doing this, the policy-makers must take note of free-riders see how best to minimize their impact.

Thirdly, other structural issues need to be looked into. Factors that may hinder production and productivity in the sectors need to be addressed.

It's a very difficult question because different countries have various economy's drivers (agricultural, industral, financial). If we compare for example Poland and USA, Ukraine and China, these countries have different opportunities and tools which influence the country's economy. So, we can use an experience of distinct country(ies) and for example create a new model for existing country's economical model. But it is just one way...

Dear Friends and Colleagues of RG

The issues of the economic, financial, material and housing situation of households against the background of the state's economic policy have been described in the publications:

Article FAMILY 500 PLUS PROGRAMS AND FLAT PLUS WITH KEY INSTRUMENTS ...

Article Ability to Generate Financial Savings by Households in Poland

Article ECONOMIC AND FINANCIAL SITUATION OF HOUSEHOLDS IN POLAND – A...

I invite you to discussion and cooperation.

Best wishes

Paul: Economic recessions are very hard to predict. And each recession has different causes. However, when a national economy seems to be going into an economic recession, the appropriate government policy is:

1. Expansionary Fiscal Policy - increase government spending and lower taxes.

2. Expansionary Monetary Policy - increase the money supply and lower interest rates

W okresie spowolnienia gospodarczego kraje stosują zróżnicowane narzędzia wsparcia rozwoju, które sprawdziły się w okresach kryzysu, mieszczą się w teorii interwencjonizmu państwa. Są to m.in. polityka rządowa - wspieranie popytu wewnętrznego, wzrost wydatków rządowych na tworzenie warunków dla inwestorów zagranicznych np. w Specjalnych Strefach Ekonomicznych, wspieranie przez rząd inteligentnych specjalizacji, innowacyjnych firm, niższe podatki CIT, PIT . Polityka samorządowa (lokalna), pobudzanie rozwoju lokalnego np. inwestycji w niskoemisyjnych Strefach Aktywności Gospodarczej, celem wzmocnienia wykorzystania zasobów gminy. Wzmacnianie sieciowych powiązań wewnętrznych (krajowych) i zewnętrznych (międzynarodowych, globalnych).

Przeciwdziałanie spowolnieniu gospodarki wymaga przygotowania nowych strategii, w okresie wzrostu gospodarczego. Oparcie przyszłego wzrostu gospodarczego wymaga wsparcia innowacyjnych technologii, innowacyjnych specjalizacji, transferu technologii z obszaru nauki do gospodarki. Proponuję lekturę książki, Z. Makieła, M. Stuss (red.) Przedsiębiorczość i zarządzanie innowacjami, Wiedza, technologia, konkurencja, przedsiębiorstwo, Wyd. C.H. Beck. Warszawa 2018.

During the economic slowdown, countries use differentiated support tools for development that have worked well during periods of crisis, and fall within the theory of state intervention. These include government policy - supporting internal demand, increasing government spending on creating conditions for foreign investors, eg in Special Economic Zones, supporting smart specializations by the government, innovative companies, lower CIT, PIT taxes. Local government (local) policy, stimulating local development, eg investments in low-emission Economic Activity Zones, to strengthen the use of the commune's resources. Strengthening internal (national) and external (international and global) internal links.

Counteracting the economic slowdown requires the preparation of new strategies during the period of economic growth. Supporting future economic growth requires the support of innovative technologies, innovative specializations, technology transfer from the area of science to the economy. I suggest reading the book, Z. Makieła, M. Stuss (ed.) Entrepreneurship and innovation management, Knowledge, technology, competition, company, Wyd. C. H. Beck. Warsaw 2018.

I'm going to agree and disagree with our dear colleague Paul Stock.

As Paul mentioned it, during economic contractions, the government could do the following:

1. Expansionary Fiscal Policy - increase government spending and lower taxes.

2. Expansionary Monetary Policy - increase the money supply and lower interest rates.

And, if I may add, depending on the severity of the recession, a combination of (1) and (2) might be utilized by policy makers. During the 1980(Q1)-1980(Q2) and 1981(Q3)-1982(Q4) recessions, the FED's Monetary Policy was very contractionary but the Fiscal Policy was quite expansionary. On the hand, during the 2007(Q4)-2009(Q2) recession, the FED's Monetary Policy was super expansionary and the Fiscal Policy which was initially quite accomodative (the budget deficit ballooning to 10% of GDP in 2009) quickly turned mildy contractionary in the following years (the same budget deficit shrinking to

Priority must be given to redistributive policies and policies that reduce inequalities, to ensure everyone can maintain a decent way of life... Reduced working time for work sharing is another key policy. Fiscal and monetary policies can only work temporarily, while the current economic slowdown is there to last. Long term socio-economic and institutionnal changes are required.

In my humble view, expansionary policy, fiscal and monetary may help only when there are no supply bottlenecks. In other words when the slowdown is a result of unemployment of all factors. All factors are available in idle state, so that an increase in demand, supposedly fuelled by the expansion may spur them into production.

Presently on the global level it seems that all free gifts of nature have already been over exploited to the brink of a final breakdown of the global ecology. Any further fuelling of demand may simply be hazardous for the humanity at large, especially if the goods and services the demand of which is spurred are not of any real utility, most of them all, the increase in demand of warfare goods and services, which are a big employment generator since at least WWI is a sure recipe for disaster.

Let me also add that today we are running after growth rather blindly. We better not forget that all growth is neither healthy nor can be as such taken as a manifestation of development. Cancer for example is growth, rather unbridled, but can you call it a healthy development? Obesity similarly is growth but hazardous. A growth positive as well as negative is healthy if it distributes nutrients (resources) to every part of the system as per its requirement in the right proportion.

Further is the hypothesis that monetary and fiscal expansion have a strong positive correlation with growth been empirically proved? I doubt.

Increasing public expenditures, increasing taxes, combating informality and tax evasion and fair labor market redistribution are factors that have a major impact on the recovery of the economy from the crisis, but if they last for more than two or three years will negatively affect the physical and mental health of the population.

Please look at the graphs. They indicate a relationship between war and growth and vice versa (end of war and slowdown). For details please refer my book

https://books.google.com/books/about/Promise_to_Pay_Vol_I.html?id=gA6GDwAAQBAJ

Nakije Kida has made some valid points and are important.

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

Can the activation of innovation and entrepreneurship be an important factor in defending the domestic economy against the forecasted, progressive slowdown in economic growth in the global economy in 2019?

Does the activation of economic processes through the development of pro-development innovation policy programs, activation of innovation and entrepreneurship can be an important factor in defending the national economy against a progressive slowdown in economic growth in the global economy and against the risk of a recession in the domestic economy that could occur through cross-border trade and international capital flows?

The importance of this question is important especially for countries with an open economy with a large share of cross-border trade and the growing share of globalization processes. In addition, this question is valid in the context of the projected slowdown in economic growth in many countries in 2019.

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

Can the activation of innovation and entrepreneurship be an important factor in defending the domestic economy against the forecasted, progressive slowdown in economic growth in the global economy in 2019?

Please reply

Best wishes

Very great policy recommendations provided by my mentors here. I quite agreed with the expansionary fiscal policy as a first hand tool in handling economic slowdown. But the use of expansionary monetary policy must be applied with care as economies have different reactions to it. In most developing economies, private investments are less responsive to interest rate as compared to consumption and therefore increases in money supply will only cause inflation and further dampen the economy. @

Dear Mr. Dariusz Prokopowicz , that is big problems, if economic growth slows, it means that micro-disruptions occur, the number of domestic economies is not functioning properly (tax revenues, export growth, negative social upheaval such as labor demonstrations, business actors lacking capital, market opportunities deadlocked for some entrepreneurs, or tribes high bank interest), macro in the example of the value of exports that continues to weaken / decline, investors move abroad, or the impact of the global economic turmoil in which we depend on it. Regards.

Dear Friends and Colleagues of RG

The issues of the economic, financial, material and housing situation of households against the background of the state's economic policy have been described in the publications:

Article FAMILY 500 PLUS PROGRAMS AND FLAT PLUS WITH KEY INSTRUMENTS ...

Article Ability to Generate Financial Savings by Households in Poland

Article ECONOMIC AND FINANCIAL SITUATION OF HOUSEHOLDS IN POLAND – A...

I invite you to discussion and cooperation.

Best wishes

Any measure that will not let the population to suffer but will improve the economy.

Yes, it is important to develop an anti-cyclical socio-economic, anti-crisis, interventionist, active and pro-development policy through innovation.

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

What instruments of active anti-crisis socio-economic policy are currently used in your countries?

Please reply

I invite you to discussion

Best wishes

The above discussion inspired me to the following considerations:

How should a guaranteed income system be built as part of a pro-development socio-economic policy?

Analysis of guaranteed income as a key element of pro-development, anti-crisis, anti-cyclical socio-economic policy?

Can guaranteed income be an effective instrument for pro-development, anti-crisis, counter-cyclical and, under certain economic conditions, Keynesian socio-economic policy?

What should be the state of state finances, what level of security, indebtedness, possible public debt and budget deficit would be possible to enter guaranteed income into the policy of socio-economic policy?

How should a system of guaranteed income rationing be established in the society in order for this instrument to effectively increase the level of consumption and investment in the economy?

Should a system of income guaranteed rationalization be built so that this instrument of pro-development, anti-crisis, anticyclical socio-economic policy would also meet the long-term goals of counteracting unfavorable changes in the demographic structure of society, i.e. the aging population in a given country?

I have answered these questions in my scientific publications whose links I have posted below.

In view of the above, inviting you to discuss the above issues, I am asking you the following question:

How should a guaranteed income system be built as part of a pro-development socio-economic policy?

Please reply

I invite you to discussion and scientific cooperation

Dear Friends and Colleagues of RG

The issues of specific programs to improve the economic, financial, material and housing situation of households as key instruments of pro-development state intervention and significant components of the socio-economic policy of the state I described in the publications:

Article FAMILY 500 PLUS PROGRAMS AND FLAT PLUS WITH KEY INSTRUMENTS ...

Article Ability to Generate Financial Savings by Households in Poland

Article ECONOMIC AND FINANCIAL SITUATION OF HOUSEHOLDS IN POLAND – A...

I invite you to discussion and cooperation.

Best wishes

We very much need to realize Socioeconomic Democracy. See my book with that title published by Praeger Studies on the21st Century, Westport, Connecticut, London.

Implement Keynesian expansionary policies: Investments in public and long-term works, redistribution of wealth, increase short-term domestic demand, and long-term foreign demand.

Therefore, in the context of the above considerations, the following important question appears:

What is the significance of innovative technologies in shaping pro-development, anti-crisis, counter-cyclical, Keynesian, pro-ecological socio-economic policy?

What instruments of state intervention are applied in your country as part of pro-development, anti-crisis, counter-cyclical, Keynesian, pro-ecological socio-economic policy and pro-social housing policy?

In some developing countries, pro-development, anti-crisis, countercyclical, Keynesian socio-economic policies and pro-social housing policies are currently underway, which are a significant determinant of high economic growth and provide citizens with material and economic well-being. In individual countries, analogical instruments of state intervention are usually used as part of pro-development, anti-crisis, counter-cyclical, Keynesian socio-economic policy and pro-social housing policy.

The applied state intervention instruments also contribute to the activation of innovation and entrepreneurship, reduction of unemployment, investment growth, income and consumption. In individual countries, analogical instruments of state intervention are usually used, including selected instruments of fiscal, budgetary and monetary policy, however, in a different structure of the use of individual instruments and a different share of their financing from the public finances of the state.

In my opinion, the development of innovative technologies and their implementation into the production processes of both consumer and investment products, e.g. construction prefabricates and ecological materials, energy innovations is a growing factor of pro-development, anti-crisis, countercyclical, Keynesian socio-economic policy, including pro-social development. housing policy?

In a situation where pro-ecologic innovations are also developed, including the new ones, including new technologies of renewable energy sources, then pro-development anti-crisis, Keynesian socio-economic policy acquires additional attributes of modernity taking into account the protection of natural resources of the environment.

In this situation, the classic pro-development anti-crisis, Keynesian social and economic policy is transformed into an ecological socio-economic policy implemented into the economy as part of the promotion of sustainable pro-ecological socio-economic development taking into account the new green economy principles.

Do you agree with my opinion on this matter?

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

What is the importance of innovative technologies in shaping pro-development, anti-crisis, counter-cyclical, Keynesian, pro-ecological socio-economic policy?

Please reply

I invite you to discussion and scientific cooperation

Thank you very much for your response and participation in the discussion

Dear Friends and Colleagues of RG

The issues of specific programs to improve the economic, financial, material and housing situation of households as key instruments of pro-development state intervention and significant components of the socio-economic policy of the state I described in the publications:

Article FAMILY 500 PLUS PROGRAMS AND FLAT PLUS WITH KEY INSTRUMENTS ...

Article Ability to Generate Financial Savings by Households in Poland

Article ECONOMIC AND FINANCIAL SITUATION OF HOUSEHOLDS IN POLAND – A...

I invite you to discussion and cooperation.

Best wishes

I am Founder and Director of Center for the Study of Democratic Societies.

Before we decide applying either Monetary or Fiscal policy, some issues are needed to be addressed such as, what is actual causing the slowdown. Sometimes we suggest the medicine without identify the source of the disease/problem. Economic system analysis too. Policies works better if the system is well functioning. If it is all checked, then it would pleased to apply the policy suggested with many comrades above!

Dear Friends and Colleagues of RG

The issues of specific programs to improve the economic, financial, material and housing situation of households as key instruments of pro-development keynesian anti-crisis state intervention and significant components of the socio-economic policy of the state I described in the publications:

Article FAMILY 500 PLUS PROGRAMS AND FLAT PLUS WITH KEY INSTRUMENTS ...

Article Ability to Generate Financial Savings by Households in Poland

Article ECONOMIC AND FINANCIAL SITUATION OF HOUSEHOLDS IN POLAND – A...

Article The role and application of Keynesian macroeconomic anti-cri...

Article Soft monetary central banking policy and Plan for Responsibl...

Article Importance and implementation of improvement process of prud...

I invite you to discussion and cooperation.

Best wishes

The effectiveness of any economic policy depends on the conditions in which it is implemented in slowdown. The most effective economic policy to reactivate the economy is to increase public spending to stimulate aggregate demand and thus increase production, investment and employment.

I think this would work well in a protected, closed economy

Dear Cornel:

Effective Demand is so important that´s why China is taking steps to bolster consumption. "Consumption has been the main driver of China’s economic growth for six consecutive years, accounting for 76 per cent of its GDP growth last year ".

It was missing that only is possible to have control and impact have impact and control over the internal variables of the economy.

Dear Martha

Thanks for the discussion. China is a special case. The Chinese know what they have to do, and nobody prevents them. All the best. With pleasure.

Socioeconomic Democracy establishes a democratic system wherein all members of society vote to establish a minimum income for all society and a maximum allowable wealth limit for all society, established by the government of that society. Trivial and super!!

The biggest tool at its disposal to control the cycle is fiscal policy. Boots economy by reduce taxes,Increase investment with low interest rates or implement expansionary monetary policy.

Hope to hear from all of you.

Dear friends and fellow travelers, the question was: " What socio-economic policy is appropriate for the period of slow down in economic growth" . Notice that Dariusz, to his credit, snuck the expression socio-economic policy that everybody ignored. Do not feel bad because you have plenty of company that includes the most famous and prolific writers in our field. For example, the theory of growth, despite all the valuable and ingenious insights they have provided us they, nevertheless, ignored the social and political environments within which the economies evolved. Indeed, these models attempted to explain the long-run phenomena of growth and development by assuming the social, political and institutional environments within which all economic variables evolved remain unchanged. OOOPS! This was, in effect, their Achillean heel in that, over time, these environments not only change but it is also conceivable that if the social and political environments do not adjust and appropriate institutions are introduced and adopted, policies may not be able to be used or, if they are used, may be altogether ineffective and therefore growth and development will not be forthcoming. (did we experience that for a long time?) Indeed, these environments predicate in a fundamental way not only how the various policy prescriptions will affect economic variables, but also what path the latter will assume in the course of time.

Now, the short-run thing is not really very different. None of you asked whether the country is developed or not. You assumed that the country is developed. So be it. But are all developed countries the same? How about Greece, Portugal, Ireland Spain and Germany and USA? What I am suggesting here is that your policy prescriptions must be contextual. You make it, more or less, contextual if you begin with three questions: where we want to go; where are we now; and how do we get there. You proposed Fiscal policy. How do you want to exercise it? By dropping banknotes from an airplane? Developed countries have problems to exercise fiscal policy because they need plans all the way to blue prints and they will have to negotiate with other political bodies regarding to who gets what and on and on. Emerging countries might not have the institutional structure to effect that kind of policy. And if social and political instability is present then no policy will do any good. Because sociopolitical instability affect investments, saving, output, distribution and the time profile of investments; that is, long term or short term commitments. And how the state pays for exercising such a policy? Now about monetary policy. Everybody suggested or thought to increase the money supply. But what you did not contemplate is how? Specifically, emerging countries, just like any other country, have to purchase instruments like bonds. But what if there are no bonds around? Or the amount of bonds makes no difference. This was the case, for example, when we tried to introduce free market to the new democratic states after the demise of Soviet Union. Or ,adequate institutions of financial intermediation. Well Dariusz, Poland had a bit of a problem here long time ago. And also Albania and the majority of these countries. But even if they had adequate amounts of bonds, did they have appropriate institutions to energize policies of this kind. Enough said.

I apologize for the length of my answer. I only hope that I gave you some food for thought.

• Recessions have come along once a decade since the mid-1970.
• Reduce interest rate is not a good option because today interest rates are still either zero or just about zero in most of the developed world ,
• In the world economic a cyclical slowdown is on the way.
• The most important slowdown is the Chinese economy, the main engine of global growth since the financial crisis of 2007-08 .

El intervencionismo estatal puede resultar un arma de doble filo, si bien impulsa el desarrollo será necesario fortalecer las instituciones de control, actualmente en el Perú el problema más algido es la corrupción; por lo que sugiero que si bien una política fiscal expansiva ayudaría mejorar la producción, será necesario implementar políticas de control

Government support policies through social programs for the most vulnerable groups of society, most of the time turn out to be an aspirin for a very serious disease. Indeed, as Gregorio says, corruption affects the effectiveness of these programs.

Social Economy could have an important role in redefine socioeconomic status and ecological sustainability by reintroducing justice and humanizing the economy. In order to do so public policies support will be needed. After the latest economic crises it has been observed that social enterprises were more resistant in crises effects mainly because the purposes were more social oriented.Every country has different traditions, cultures and approaches hence; in terms of Social Economy there is none such common public policy framework which will be able to tackle social and economic problems covering all cases.That is why I believe the question should have been more spacific.

“Social Economy has an interdisciplinary character formed by numerous disciplines, such as Political Economy, Sociology and Economics. According to Brown (2014, p.17) Aristoteles believed “That the human being is a political animal more than any bee or any herd-animal is clear. For, as we say, nature does nothing in vain, and the human being alone among the animals has speech”. Thus, the communities of humans are political communities, where people are act and organise in order to fulfil their needs. In Aristotle’s analysis, the emphasis is not equally distributed on the contrary, it advances the social and the political that were later combined with the economic and relating principles. In this case the quality of social life is the primary goal as the Social character of Economy attends human needs, combining human actions and organisation for the pursue of their aims, in an attempt to enhance their living standards.

According to Salamon (1994) the initiatives that individuals take in order to increase the value of their living standards is the greatest measure of people’s power. Christoforou A. (2007, p.14) points in her thesis that “means and ends to development are associated with norms and networks of social and political participation”.”

https://www.researchgate.net/project/Social-Economy-and-the-emerge-of-the-Third-Sector-the-Non-Government-Organisations-in-Eurozone

During slowdown, automatic stabilizers should be triggered and countercyclical actions must be implemented. In addition, authorities can rely on discretionary actions to enhance the impact of the fiscal policy.

I initiated and am the Director of the Center for the Study of Democratic Societies. I am located at www.Centersds.com.

At this moment, the best counter-cyclical policy, is is to boost effective demand through government spending.

what is the reason of the slowdown the economic growth? the common answer in the Macroeconomic textbook is the economy policies ,but the most important factors maybe is the other things,like the cultural.the law system and etc.So I think the economic growth is the comprehensive result of all.

In the developed country,maybe the reason is the technology progress, while the developing country maybe need to reform its economics system at first!

Dear Everybdody:

Projections on Economic Growth published by the World Bank (Global Economic Prospects), reflect Global growth is expected to slow to 2.9 percent in 2019.

According to World Bank Forecast to 2019, economic growth will be by regions:

East Asia and Pacific remains one of the world’s fastest-growing developing regions. Regional growth is expected to 6 percent in 2019. Chinese Economy is expected to 6.2 percent.

Europe and Central Asia is forecast to 2.3 percent in 2019.

Latin America and the Caribbean is projected to advance 1.7 percent.

Middle East and North Africa, economic growth is projected to 1.9 percent, for the same year.

South Asia is expected to 7.1 percent, the highest economic growth.

Sub-Saharan Africa, economic growth is projected to 3.4 percent.

Slowdown is not Forecast

I suggest you also see this .

https://www.smava.de/european-debt-clok/.

Dear Cornel:

Thanks for the link

During a period of slowdown, expansionary fiscal policy is best for economic growth. As the government reduces its taxes and increases its expenditure it attracts both local and foreign investors into the economy and this increases real GDP

It´s important to point out that sistematically expansive policies lead to increasingly higher inflations without affecting the growth of the Gross Domestic Product

I think that deficit spending according to Keynes might be a suitable mechanism when the industry i snot more feeding into economic activities. Then the sate becomes an important engine to development.

Dear Eberhard:

Public spending is the key element to drive economic growth.

As other commentators have pointed out, the best policy is a counter-cyclical policy, i.e. an expansionary fiscal policy during an economic bust. However, for developing countries, government fiscal capacity to boost economy is very limited. Probably due to limited capacity to collect taxes or failed to increase saving during economic booms. Hence, relying on offshore funds to finance the expansionary fiscal policy may prone to another danger.

Appropriate policy decision for the deceleration period of economic growth,

The short or long term of the period, which has the effect of slowing down in the economic growth process, poses measures to be taken.

The fiscal policy to be taken in the short term reflects the danger of increasing prices as interest and inflation after the reduction of fiscal measures and injecting money into the market, which is undesirable.

  It is also important to note that the dynamics of slowdown in the growth process of economies are due to internal or external effects.

  The need for revision of economic growth targets and the economic and social damage caused by the problem to be overcome by the slowing down of the country needs to be repaired quickly, it requires fine-tuning, decision-making and implementation.

The fiscal capacity of governments depends on a variety of factors including industrial capacity, natural resource wealth, personal incomes and taxes. I know is very limited ( because there is never enough money to boost economic growth and improve indicators of population welfare). However, there is no other economic agent in developed countries and developing countries that can boost the economy through public spending.

Economic policies are forced to be implemented in accordance with the policy of the elected policy makers, despite the selected policy challenges.

It is one of the methods applied to trigger demand by increasing public expenditures in the economy. This model is also called the Keynes economic model.

The solutions of the problems of 100 years ago should not be the solution of today's problems.

The problem of the inadequacy of public expenditures arises when the public offerings are not used rationally by the public. There are delays in public investments due to fear of being idle. The main problem here is the deficiencies in the sample used in the plan definition.

The attitude, thoughts, abilities and level of participation of the individuals are taken as an average.

In practice, since supply takes place in the long term, demand occurs in the short term and interest rate arises and leads to the failure of the economy in the long run.

Preventing uncontrolled increase in interest rates should be the primary objective.

In the first phase of public budget in the economy, the determination of public expenditures in the second stage according to economic and social conditions tax and other income determination rule are applied.

Public expenditures, which cannot be met by tax payments, lead to public borrowing. This negative situation leads to the exclusion effect of private equity investments.

It´s to take into that to choice socioeconomic policy for period of slowdown in economic growth, political situation is important in the choice.

But what about economic slowdown amis a trade war? Dies economic policy still works?

Public spending may cause a trade off against private investment in the mediun run

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

How should the national, pro-development housing policy be shaped?

How should the national, pro-development housing policy be shaped as one of the key factors of the state's economic development?

In my opinion, construction is such a booming and developing sector of the economy. However, in the context of the current processes of long-term business cycles, the slowdown in economic growth recorded since the end of 2018 in many countries and in the context of the state finances, the following are the current questions.

In my opinion, construction is the key pro-development sector of the economy, which also significantly affects the material situation of citizens. Housing and social policy are usually important elements of socio-economic policy, which significantly affect the standard of living of citizens. However, in the context of the current processes of long-term business cycles, the slowdown in economic growth recorded since the end of 2018 in many countries and in the context of the state of state finances, the following question is up-to-date:

In a situation of a balanced state budget, a low level of indebtedness of the state finances and current economic realities, can a large-scale state-supported housing policy and social policy be promoted and promoted on a large scale?

In connection with the above, the key questions are as follows:

- Is the housing policy based on the state-supported construction of affordable housing for citizens and the system of family-related 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, a low level of national finance debt, can the above-mentioned housing policy and social policy be developed on a large scale?

- In a situation of well-governed state finances 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 socio-economic policy be a good solution to the situation of a decline in economic activity and a cyclically slowdown in the country's economic growth?

- How should the national, pro-development housing policy be shaped as one of the key factors of the state's economic development?

Please reply

I invite you to the discussion

Thank you very much

Dear Friends and Colleagues of RG,

The issues of specific programs to improve the economic, financial, material and housing situation of households as key instruments of pro-development keynesian anti-crisis state intervention and significant components of the socio-economic policy of the state I described in the publications:

Article FAMILY 500 PLUS PROGRAMS AND FLAT PLUS WITH KEY INSTRUMENTS ...

Article Ability to Generate Financial Savings by Households in Poland

Article ECONOMIC AND FINANCIAL SITUATION OF HOUSEHOLDS IN POLAND – A...

Article The role and application of Keynesian macroeconomic anti-cri...

Article Soft monetary central banking policy and Plan for Responsibl...

Article Importance and implementation of improvement process of prud...

I invite you to discussion and cooperation.

Best wishes

I respectfully suggest we all seriously consider learning more about Socioeconomic Democracy which is described on my website at ?????

to strengthen demand by government investment, even deficit spending. when there is a slowdown in the economy, which often reduces public investment, then the state should intervene anti-cyclically.

I don’t think the answer is an easy one.

If high public spending, high taxation and high public debt was the solution, my country should have the highest income in the OECD:In France, for the past 40 years, all government budgets were deficitary, 20% of the workforce is in the civil service, the level of taxation is the highest in OECD and public debt is close to 100% of GDP. Nevertheless, growth has been sluggish and unemployment has been in the 8%-11% range for decades.

So, the answer may be somewhere else. I don’t know where, but I suspect that economic policy making is like riding a motorbike: you should not look at what is immediately in front of you but keep your eyes and your attention at where you want to go ahead of you. Unfortunately, long term for politicians is next week.

Some countries tried to establish rules in order to circumvent this short-term bias, and be able to spend in bad times and save in good ones. For example, a 1% primary surplus over the “structural” budget (taxes that would accrue to the State coffers if GDP was on its long-term trend). This allows for a stronger effect than the simple automatic fiscal stabiliser.

This may help solving the monetary aspects of poverty in a recession. Yet, most (all?) social issues like housing, health or education are long term by definition. Hese long term objectives should be acceptable by most political parties in order to remain in place when there is a change of administration. Not easy because it is so tempting for politicians to promise miracles in order to win an election...

In all cases, the policies needed to reduce the negative impacts of a recession should be put in place long before the recession takes place.

Dear Hubert:

Public spending drives economic growth. However there are economic, political and social variables that prevent the majority of the population from benefiting from economic growth. I do not have data but I suppose that France has a high concentration of income and that its Gross National Product is greater than its Gross Domestic Product.

Dear Eberhard:

It´s very important that the multiplier effect of economic growth impacts on the domestic economy.

Dear Martha Pantoja :

I am afraid not really:

For 2017, World Bank reports a GNI of 2,560.86 US bn, lower than a GDP of 2,582.50 US bn.

As far as income concentration is concerned, after taxes it is one of the lowest in OECD. I did not look for the stats, but if there is a positive aspect in the French social model, it is that rich people pay a lot to poor people. Issue is: a lot of very poor unskilled people are immigrating and many rich people (or potentially rich ones, such as top university graduates) are emigrating, so this generous transfer story may not be sustainable.

And if you really believe that public spending alone creates economic value, well, here I have nothing to say. As much as I can accept as a realistic approach about the long term role of public spending is that it can crowd-in private investment and help creating economic value-added (id est, monetary income). But that public budget alone creates value? Sorry, I can't because it is a bit too radical for me.Perhaps I need to do a trip to Venezuela or Havana to look at a real experiment and it may change my mind. But I doubt...

I think that public spending alone does not create economic value. It might even be dangerous, if the public sector is a major economic actor. The question is about slowdown of the economy. Here I feel that the role of the public sector is to act anti cyclical, avoiding to much unemployment, putting money in people's pockets (effective demand, purchasing power), which drives private consumption and helps the industry and services to continue. .

Dear Eberhard Weber

Spending Public could be alone not create economic valuje, but is the main driver of economic growth.

Dear Eberhard:

Do you think that only private investment create value?

Dear Friends and Colleagues of RG,

Is housing policy an important segment of the state's social and economic policy?

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?Do you agree with me on the above matter?

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

Is housing policy an important segment of the state's social and economic policy?

Please reply

I invite you to the discussion

Thank you very much

Refer to the articles accessible at the following links;

1. https://www.academia.edu/37067807/Fiscal_Policy_for_Economic_Growth

2. https://www.academia.edu/6079125/Economic_Policy_Reforms_Going_for_Growth

3. https://www.academia.edu/3813717/Tax_Policy_for_Economic_Recovery_and_Growth

4. Article Public Policy for Economic Growth: Theory and Empirics

5. https://www.academia.edu/7430481/Financial_Systems_and_Economic_Growth_An_Evaluation_Framework_for_Policy

Dear Dariusz Prokopowicz The answer to your last question is both simple and devilishly difficult.

It is a simple "Yes", because housing policy has been part and parcel of the State policy as long as some branches of homo sapiens have abandoned nomadic customs, have chosen to settle in a specific land and have developed something like a "State" (be they war-lords, priests or kings). The first thing the Roman empire did when conquering new land and wanted to develop a city was to design the two main avenues that would define the future urban landscape.

But it is also a desperate "Please keep the bureaucrats out of people's life" because most of the "clever" urban planning projects from the mid-20th century up to today ended in sociological disasters (almost all, and except for the richest who were able to buy a home in a privileged urban area or live outside the cities).

The very few successful examples I witnessed were policies where the State helped people obtain private ownership. Nothing original here, as ownership (in land, housing or projects) limits free riding and avoids the tragedy of the commons.

No, certainly also public investment create value, but I think that usually the state should not be an economic actor in the sense that the state ha sits own industries. Here that problem often has been that state enterprises are often inefficient, overstaffed, too expensive. However when the state invests (e.g. in infrastructure, environmental protection, etc) then still the investment can be carried out by private enterprises. So the state invests when private investment slows down, .....

Dear Eberhard:

Government invests en strategic Sectors. In some cases private sector invests,, but it wants many "incentives".

social programs and specific interventions that meet the most urgent needs of the population, and that implemented properly, promote economic growth

Housing policy is certainly a most important segment of the State's social and

economic policy. Housing should be built according to a "Green Policy", with open green spaces for a healthy environment, parks and children's gardens. This would not only benefit the State socially as the population would be much happier, but also economically as it would promote the health of both adults and children.

Dear Dariusz:

I think socioeconomic policy is same that SOCIAL WELFARE. Undoubtedly, the economic crisis have affected different people. Since the 1930s, the message is clear: the government must drives Social Welfare.

The role of the state is to create conditions for sustainable development. Investments in innovative sectors of the economy are a priority.

Dear Zbigniew

The role of the state is to create conditions for economic growth and sustainable development in most countries in the world.

Developed countries invest a lot in private sectors, through subsidies such as agriculture and aircraft manufacturing. So, the profit maximization come from subsidies, nos perfect competition, but such a subsidies has negative effects in developing world, as is the case of some agricultural goods.