Imagine being put in charge of a business in a lousy state. The equipment is outdated and unmaintained, the people are demotivated, the customers are angry, the place is a mess… The first thing you think is that it will take a lot of money. You may have to borrow, but you have to be very judicious. You might pay for a more expensive manager for a while, it’ll cost you to fix the machines, renovate the buildings, hire better people…
If somebody came up with the idea of saving the business with savings, everybody would know they were crazy. Savings, maybe, but to invest that saved money in something else. Or maybe someone has a plan to shrink that big business into a small efficient and profitable one.
In that context, it’s interesting how anyone can believe that the national economy could be cured by savings. It has never been done before in history. Now Milei in Argentina says it will work for him. He may be the first in history. We’ll see.
In a way, the gigantic investment drives that the European elite keep pushing make much more sense. These could actually get something going. But one more condition must be met. These actions cannot be completely meaningless.
