I am thinking about the way to stabilize the economy. The government always plan more to minimize the peoples burden buy add more subsidies, incentives and reducing the tax or custom duties. Is it really helped? In my point of view, what was the government have planed and done was just useful for short term and just for minimize the burden among peoples or consumer, not to stabilize the economy.
I think, this is a time for government change the way from planning short term step just to minimize people burden to accelerating back the economy. I understood that all subsidies, incentives and reduces of tax for the consumer is to ensure that they have enough fund to be spent and invest, so the economy will accelerated. But, how if the firm (as an employer) not able to keep competed in the market and finally collapsed? The consumer (before this known as employees) will be unemployed. Will the government give incentives to them? So they can sitting at home watching television and did not have to worry about the economic downturn because they still got money from the government incentive to be spent. Does the government have that much of fund?
This is the suitable time for government to change the wind by giving more attention to the firms or companies or manufacturers or producer. This is because they are the most important medium to stabilize and solve the economic downturn. The government may give to them more incentives, subsidies and also reduce the tax rate so the can minimize their cost of operating and keep maintaining their number of employees. These may help to prevent unemployment and in the same time consumers still have money (from the salary they get) to be spent in the market. This may encourage the market to growth and as the result, the economic circle keeps running and the economy will improve and finally stabilized.
Unemployment is a disaster not only in economy but also in a country or government. It may cause uncertainty in economy and politics and also may cause a lot of crimes and indiscipline. People will be more selfish. The riches will dominating the poorer and the being dominated will stand up and against the dominator and finally we can not avoid being like Bosnia or other government/country which are damaged and collapse because of the uncertainty in economy and politic.
This is only a point of view from me, a fresh graduate. I am welcoming any feedback or better ideas that may be shared to help the government to face the economic downturn wisely.
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