Czech Industry Reform - situation and solutions

Day 580, 14:13 • Published in Czech Republic Czech Republic • by Red_Baxter


Hello Czech citizens and workers.

First, I would like to inform you that this article is quite long, but it is neccesary for every citizen to read it. It is problem of us all.

I would like to present you my research and thougths what should be done so that we improve our economy, what will, at the end, have impact on strengthening CZ currency - CZK.

First, I would like to meet you with situation in CZ.

Czech workers get too low payment and that is a fact, comparing with the rest of the eWorld.
Our products are quite expensive, comparing then with productivity of workers. I would not like to enter in calculations right now, but anyone who wants to explore a little bit world market and compare it with CZK market, will come to same conclusion.

We are too small country, so that we can have competition inside economy.
In contrary, we should act as unity, so that we strengthen our economy and release ourselves from some paralyzing laws this game have.
The law that makes most damage to our market is called maximum productivity limit in companies. You can see him on company page under workers who work in that company.

With this paralysing law inside companies, we, as small group of citizens, cannot allow ourselves competition, because if we have it, we will never achieve something, what I call, maximum standard, which we CAN achieve.


What i propose, is to reduce number of companies on market, because there are simply not enough workers to work inside every company. This way we will allways have companies with 2-3-4 workers, whoose maximum productivity is reduced by that paralyzing law. If you have smaller productivity, smaller number of products you will make, so smaller payment you get.

I hope you all understand this problem.

Next problem is lack of consumers. Products all companies in CZ make cannot be sold because there is simply too low peoples who will buy them. So, we need a good plan for export.
You see, if companies cannot sell products you make, they will reduce your payment.

So, main factors that brougth us into position of inflation and smaller payments are:
unability to achieve max productivity
and
unability to sell products we make

I hope I, also, answered to those who think bringing products outside will bring wealth to our country.
Maybe competition will bring lower prices of products, but you forget that we allready have tons of products on market which cannot be sold! And also, if we bring products outside, that will mean less income to companies, what will in the end force them to lower payments. We cannot allow to us such way.
Lowering product cost is not the the solution, as product prices are not main problem.

When we reduce number of companies, we will have companies with 10 workers (that means you make maximun productivity you can).
When we achieve that, we should help those companies that they buy licences in other countries, so that we can export products we cannot sell on CZ market.

In such system, only expenditure will be import taxes in foreign countries where we will sell products we make.
At this point, I would like to support companies to buy licence in Spain, as we have to take care about both import tax and VAT.
as you can see here, Spain have the lowest import taxes, together with VAT, in eWorld.
Only some of other countries have lower lower taxes for some products, but they are constantly changing, what can be very tricky. In contrary, as long as in Spain will be present party (CYD) on top, we dont need to fear about raising taxes.

So, if we will be in ability to get some existing companies, or new ones, to function this way, we will be able to raise standard of Czech workers much higher than it is now.

For managers of companies that would be out of function; Dont worry! We will not destroy any company, just put them out of function (freeze) until we bring new players to CZ. And with this way we are pushing right now, we will never bring them to live in CZ, because we are poor individuals. So, it is true we cannot take care for ourselves in present condition.

We must change lots of it.

As we dont have money (because of low taxes), we cannot rely on country, so we need to fund it by ourselves. And that we only can achieve together.

Thank you for reading

RedBaxter, minister of industry.