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MIDDLE CLASS PROTESTS
Naira Hayrumyan
17:37 15/01/2013
Story from Lragir.am News:
http://www.lragir.am/index.php/eng/0/economy/view/28635
The essence of the new tax reforms is to cork up the remaining holes
through which the Armenian economy could brief. After boosting taxes
on dentists and small shops and introducing the plan to tax farmers
those who still were able to earn a living will choke.
The Armenian economy is a huge bank which circulates borrowed money,
interest earned is spent on salaries and pensions which are just
enough to prevent people from starving. There is no real economy.
Money is not invested in development, it goes to the pockets of the
ruling elite.
There is a limit beyond which the government will not be able to
tighten the rope around people's neck. A few years ago inflation was a
two-digit number. The limit seemed to have been reached, triggering a
social uprising. However, the government seems to have understood that
there will be no uprising so it has decided not to move farther.
The protest of dentists at the president's office may be a good
precedent. In fact, it is a protest of the middle class which is
deprived of its means of earning independently from the banks. A
hungry uprising is believed impossible in Armenia but middle class
protests might be an important factor in reviewing the economic
policy.
The middle class needs to understand that only protests will stop the
government from destroying the real economy and blowing the financial
balloon bigger. Otherwise, the government will continue to pull the
rope tighter until the economy is suffocated, and those still alive
leave Armenia.
It is pointless to rely on the elections, change of government and
economic policy by means of elections. On the contrary, the ruling
regime feels so confident as not to beware unpopular steps ahead of
the election. People are silent, which means there is room for pulling
the rope tighter.
From: A. Papazian
Naira Hayrumyan
17:37 15/01/2013
Story from Lragir.am News:
http://www.lragir.am/index.php/eng/0/economy/view/28635
The essence of the new tax reforms is to cork up the remaining holes
through which the Armenian economy could brief. After boosting taxes
on dentists and small shops and introducing the plan to tax farmers
those who still were able to earn a living will choke.
The Armenian economy is a huge bank which circulates borrowed money,
interest earned is spent on salaries and pensions which are just
enough to prevent people from starving. There is no real economy.
Money is not invested in development, it goes to the pockets of the
ruling elite.
There is a limit beyond which the government will not be able to
tighten the rope around people's neck. A few years ago inflation was a
two-digit number. The limit seemed to have been reached, triggering a
social uprising. However, the government seems to have understood that
there will be no uprising so it has decided not to move farther.
The protest of dentists at the president's office may be a good
precedent. In fact, it is a protest of the middle class which is
deprived of its means of earning independently from the banks. A
hungry uprising is believed impossible in Armenia but middle class
protests might be an important factor in reviewing the economic
policy.
The middle class needs to understand that only protests will stop the
government from destroying the real economy and blowing the financial
balloon bigger. Otherwise, the government will continue to pull the
rope tighter until the economy is suffocated, and those still alive
leave Armenia.
It is pointless to rely on the elections, change of government and
economic policy by means of elections. On the contrary, the ruling
regime feels so confident as not to beware unpopular steps ahead of
the election. People are silent, which means there is room for pulling
the rope tighter.
From: A. Papazian