If politicians are allowed to print money to cheat the system, why are we not? Over the past 50 years, it seems as though people have forgotten how economies function. Some economies do well and prosper, some economies do badly and fail. If it fails, the politicians must answer to their citizens why they got it wrong and they should be accountable for their actions.
If this natural process is interrupted by printing money from thin air to postpone an upcoming crisis then no one learns the lesson. Here are some examples of how money in circulation has increased dramatically over the past 30 odd years:
and some fun cartoons:
I have always thought that Iceland, Switzerland and Norway were the countries with the most common sense in Europe. However, I found out today that Estonia is probably the best and here is why:
- It is a pluralist democracy
- A market based economy
- It has liberalised trade
- It has no budget deficit and total debt is 5% GDP
- Unemployment is 1.8%
- 90% of the economy is privitised
- You can register a business in under 18minutes (14months in Italy)
- It has a flat tax
- It is the law for the government to have a balanced budget
- The Estonian Central Bank is barred from lending money to the government
- It has the worlds largest number of start-up companies per capita
- All their policies were inspired by Margaret Thatcher and Milton Friedman as admitted by former Prime Minister Mart Laar
What an incredible country. This is an example of what can be achieved with the right policies after breaking away from the soviet union (Ukraine should take note!).
Furthermore, Estonia was hit very hard during the recession, unemployment reached 18%! Since then, Estonia now has the lowest ratio of government debt to GDP and the lowest budget deficit in the EU.
Estonia ranks high in the Human Development Index, press freedom (third in the world in 2012), economic freedom, civil liberties and education. It is often described as one of the most wired countries in Europe (Internet), and is recognised as a leader in e-government.