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Matilda Bačelić: Just Don’t ‘Create’ Jobs

Another election cycle or circus is behind us, and the only thing that can cheer us up is that the most certain thing is once again – uncertainty. Although it is difficult for statists to imagine life without a strong state, it seems that this underdeveloped and fragile economy is quite well off without the wise decisions of Croatian statesmen. It is better off while politicians are preoccupied with themselves rather than with it.

Tax (de)burden

And that we cannot expect anything particularly good even when (or if) politicians reshuffle and share chairs is suggested by the announcements from the election campaign. Although we have experienced and heard all sorts of things so far, every new campaign, and it seems they might be somewhat more frequent now, irritates anew. When it comes to the economy, the most beloved topics for sweet-talking promises from which nothing will come later are: taxes and jobs. There is no party that will not promise a reduction of this or that tax, or in the worst case, that they will not raise them. In reality, of course, it is a completely different story. We are a country with an extremely high tax burden, and every time there have been changes in that system, they have gone upwards. In this campaign, relative electoral winners have announced a reduction in VAT, corporate tax, and then the highest income tax rate from 40 percent to a generous 36 percent. As if even with that we won’t be too expensive for experts from any field, for whom we are supposedly yearning.

Fashion and startup

However, even more irritating than false tax promises are the announcements about new jobs that will be created by a magical bureaucratic wand. Without delving into the now irrelevant promises of electoral losers, we have no choice but to settle in comfortably and start counting. Because by 2020 we will have 180 thousand new jobs. And our GDP will grow at a rate of five percent because that is a nice number. The most interesting thing is how HDZ plans to open 20 thousand jobs in startups. Because that is trendy now. The small problem is that no job, especially such a job in the real sector, can be created by force. And all this is promised by those who have never created a single job in any company. The only glimmer of hope that any of those 180 thousand jobs will actually open would exist if the state got off the backs of entrepreneurs. If politicians are going to ‘create’ them, the only thing we can expect is an increase in the number of employees in the public administration. 180 thousand? Well, it could be 280…