By Ahmed Al-Jarallah Editor-in-Chief, the Arab Times
FROM the beginning of the regime of former US president Dwight Eisenhower until a few years ago, the American budget recorded significant deficit annually; so much that the volume of public debt rose to around $19 trillion. Undoubtedly, this affected the infrastructure of the world’s largest economy.
The scenario began to change only when President Donald Trump took over the reins of leadership. The man, in his capacity as an investor with direct link to problems in the domestic market, focuses on transforming his country to address the high rate of unemployment, economic stagnancy and incessant crises by restructuring it according to the needs of the society, especially in terms of increasing employment opportunities. The first thing Trump did after winning the presidential election was meet businesspersons, bankers, economists and industrialists.
After listening to their requests, he asked: “What do you want me to do as a way of cooperation towards solving problems without adding burdens on the public fund which could worsen the fragile economic situation?” After that, series of decisions were issued to protect and activate the private sector, such as imposing taxes on imported steel, aluminum and others which led to reliance on the domestic market as he was convinced that Europe and China were looting his country to increase the means of livelihood by reducing prices of goods and accumulating profits.
In the Arab world, the case is completely different, because the economic structure stands on a policy whose foundation relies on the State in everything. It restricts the private sector with series of constraints that prevent its growth. It is gradually killing individual motivation upon which the real economy stands. Arabs inherited this from the Marx’s model adopted by the revolutionary countries such as the Egypt of Abdul-Nasser. This model nationalized all sectors and put them under the government administration while acting under the principle, “Work within your ability and take according to your need.” Citizens became liabilities for the State without taking into consideration the production and its quality.
SOURCE : ARABTIMES