Governments of the US, EU and Japan confront a huge funding problem due to the conversion of private debt into public debt in the aftermath of the so-called financial crisis of 2007-2009.
-The strategies that governments and the IMF adopted to address this problem drive to a worsening of the economic and social situation in many countries.
-TSCF opposes the views of the IMF. We recommend the adoption of new policies blending growth stimulation with rationalization measures.
Government debt and asset sales:
Governments should run more creative budget policies.
Massive government asset sales should be set up, be these assets industrial, financial, real estate properties, or works of art.
Separation between government budget and mutual assistance:
The concept of public funding should be clarified by distinguishing the government budget on one hand and the social welfare expenses on the other hand.
Social welfare is associated with solidarity, not with government, and should be left to mutual assistance organizations and private insurance.
The social and mutual sector economy should be attributed more responsibility.
Responsibility of the rating agencies:
The ratings of indebted and insolvent governments should be awarded with more severity so as to protect investors and force governments to reform.
Growth should be boosted by redirecting the available funding to support those in need, and ultimately boost consumption and employment.
Currency parities should be re-adjusted in order to boost the economies of the less competitive countries. This presupposes to unpegg the economies artificially linked within political constructions such as the euro area.
Tax systems should be drastically simplified through the adoption of a single flat rate tax on all revenues.
Opening public funding to civil society organizations:
Civil society should be boosted by opening public funding by right to all organizations pursuing the common good.