The solution to saving the European economy.
Muhammad Mahdi Bakhish, economist.
The European economic crisis was caused by the inability to create a balance between social welfare costs and productive investment. Heavy taxes, high government spending and military spending reduced the incentive to invest and save, and Europe fell behind America and China in the technological competition. The American model is based on the dynamism of technology and investments, but it faces severe inequality. On the other hand, China followed the path of development by prioritizing investment, competitiveness, international communication and private sector participation. Iran's economy also needs a thorough examination of the allocation of resources. Over the past decades, allocating resources to subsidies and unproductive spending instead of productive investment and wealth creation has undermined sustainable growth. To get out of the recession, reforming the tax system, expanding international relations, reducing government intervention and strengthening the position of the private sector are among the main requirements; A way that can revive the economy by being inspired by global experiences and creating competitiveness. Full text.