Austerity – essentially saving and paying back – is probably a recipe for a In ancient Mesopotamia, debt was commonplace; individual debts. Posts about Back to Mesopotamia written by aurelius Ways Out Of The Crisis”” where The Boston Consulting Group (BCG) helped explain. In Back to Mesopotamia? a now prescient report by the Boston Consulting Group (BCG) published in September it was argued that, while.

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Fiscal policy is cbg if you try to use it any further than for small cyclical upturns or downturns. As a consequence, the tax rate on capital gains can be brought down significantly. Fiscal policy cannot be a substitute for supply side generated mesipotamia demand. Capital gains on paper must also be taxed. One thing is certain: Email required Address never made public. And effectively sell what is produced by it, or change the sectorial weighting. Which unfortunately means that there is an equity shortfall that will have to be funded with incremental cash which will have to come from somewhere.

The only possible discussion focuses on how to distribute the burden of sacrifice needed in order to free up enough budgetary resources to fulfill the commitments of the indebted nation. Citizens must resign themselves mesopotamla paying off the debt. As a rule, I think tax levels are too high.

And the amount needed to tax from the assets of the wealthy? The would not be bxg, and they would require broad political coordinate and leadership — something that politicians have replaced up til now with playing for time, in spite of a deteriorating outlook.

In Back to Mesopotamia? If we want a sound economy, we have to accomplish a couple of major paradigmatic changes in the actual order of things. We have a lot of work to do the day after. We believe that some politicians and central banks — in spite of protestations to the contrary — have been vcg to solve the crisis by creating sizable inflation, largely because the alternatives are either not attractive or not feasible:.


Back to Mesopotamia? (The Boston Consulting Group) | PDF Flipbook

It is likely that wiping out the debt overhang will be at the heart of any solution. And about outsized salaries and stock option payments to the company executives. There is one thing we would like to bring to our readers’ attention because we are confident, that one way or another, sooner or later, it will be implemented. Unfortunately, reaching consensus on such tough action might requiring an environment last seen in the s. Economic temperature will be below freezing level for a time.

Sometimes we go past the-beggar-thy neighbour policies and engage in outright swindle-thy-neighbour acts. Central Banks boards should act as caretakers of the system, not as rock stars that conform it to their particular desires, or like to play with it.

It is the only way to efficiently tax the rich. We need to understand that balance sheet recessions are very different from normal recessions. We have to allow for some flexibility, but we need on average balanced budgets.

The debt must be paid off. Notify me of new comments via email. Such a course of action would not be new.

Back to Mesopotamia? (The Boston Consulting Group)

In the cases mentioned above, proclamations of general debt cancellation were made at the initiative of rulers concerned with upholding social peace. At this point BCG goes into the details of why it is long overdue for reality to be finally acknowledged.

We need a power sharing set of presidents to manage each of the main powers of government. However, boosting inflation has not worked so far because of the pressure to deleverage and because of the low demand for new credit. The challenge facing today’s politicians is how clean to wipe the slates.


A commitment by the government to restrict its debt level and to prepare for the increasing costs of an aging population by either limiting benefits or raising the retirement age. In spite of massive intervention by the Fed and the US government, growth remains anemic The deleveraging of private households will have to go on for many years The real estate market has not yet stabilized.

Generalized debt cancellations have been enacted repeatedly throughout history.

Creditors, and junk mespootamia holders, please check with your cardiologist before reading further. Flying helicopters should have been allowed only in spare leisure time sorry Ben. It is also about minimizing corruption. Labor participation rates is the relevant statistic. In ancient Mesopotamia, debt was commonplace; individual debts were recorded on clay tablets.

Maybe he will resort to lies now that things are getting tough.

Wealth Tax: Back to Mesopotamia [2011 paper by BCG]

We have argued for a long time that the US economy needs to address some fundamental issues in order to become globally competitive again. You ought to be ashamed as well. This underscores the dimension of the Irish real estate and debt bubble. And now it is time to face the facts. This was the case in Ancient Greece and Rome.

Since the publication of Stop Kicking The Can Down The Road, a number of readers have asked us what would happen if governments persisted in playing for time.

Albeit grudgingly, we should start today. You may consider this bizarre thinking, but it is not.