Sounds like a scene out of Atlas Shrugged. The productive private sector is signalling a lack of dialogue and clarity as well as conflicting messages from the authorities of the new Costa Rican government, which is also proposing laws that discourage investment. An increase of more than 4% in the salaries of public officials, lack of action over lowering the cost of energy, lifting barriers which generate legal uncertainty, and initiatives to increase the tax burden on the formal productive sectors are the issues concerning entrepreneurs in Costa Rica.
From a statement issued by the Costa Rican Union of Chambers and Associations of Private Business Sector (UCCAEP):
Mixed signals from the government concern the business sector
• Projects convened in special sessions discourage investment
• Union of Chambers calls attention to lack of dialogue, clarity and conflicting messages from the authorities.
The Costa Rican Union of Chambers and Associations of Private Enterprises (UCCAEP), expressed its concern about the confusing signals it has received in recent days from government authorities.
Issues related to legal security, employment, energy and public expenditure are generating alarm among Costa Rican entrepreneurs.
“When the Citizen Action Party won the elections, there was good communication between Luis Guillermo and the sectors, but today we are not perceiving the same arrangement, but rather that signals are being sent which are generating uncertainty and insecurity in the sector,” said Ronald Jimenez, president of UCCAEP.
It’s the same thing over and over when a left wing gov’t takes over.
1. They promise all sorts of free ‘stuff’ to uneducated and un-informed voters which are the majority of voters. This is how you buy votes.
2. When the win the election, they say they can’t do many of the things they promised because now that they’ve seen the books they discovered there isn’t enough money.
3. They accuse the former gov’t and businesses of cooking the books and stealing money from the people, and promise to get it back.
4. Now that they have the vast majority of people wanting revenge against the most productive citizens (business people and local investors) who make like better for everyone, they go about destroying the economy.
5. The productive people leave the country or move their business out of the country and the standard of living drops for everyone, with the poorest people getting hurt the most.
6. The gov’t does more of the same and makes the situation worse and worse. Argentina and Venezuela are 2 recent examples of the destructive left-wing process I describe.