Those who favour the idea of the Polish minimal state tend to advocate for a reduction of the number of civil servants. Economists point out that such a solution would be ineffective.
The Polish government’s fiscal reform plan has been labeled Marxist by liberals, anti-social-democracy by the left and a dog’s breakfast by accountants. Does it put more power in the hands of the ruling PiS?
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When the state spends money on roads and railways, we call it ‘investment’. When the state spends on nurseries, school meals, or health care, we call it social, educational, and health expenditure. Yet as
Jakub Sawulski
Wojtek Paczos
argue, the latter form of spending may yield a higher rate of return in the long-term.
The Covid-19 pandemic has triggered a shift in the approach of policymakers to fiscal policy. In contrast to the financial crisis that began in 2008, the state is expected to be very active and contribute high levels of spending to stimulate national economies as we emerge from the pandemic. Many of the projects that have been discussed so far have focused on investing in infrastructure and other drivers of economic development.