Home
Consumption pattern in the Iraqi economy
opinions 06/07/2023
Dr. Hamed Rahim
In our structurally disordered economy, despite the
increase in aggregate demand resulting from the increase in government spending over the past years and the
consequent increases in wages and salaries mainly for the government sector,
we did not witness an improvement in the national aggregate supply side.
On the contrary, that increase led to the atrophy of the productive sector as a result For the loss of competitiveness towards imports,
which increased as a result of the rise in aggregate demand, which made the desired effect go to the economies of the trading partners.
The macro analysis of demand included four main axes
(consumer demand,
investment demand,
government spending,
net trade balance), and
these axes, according to economic theory, affect economic growth rates positively, as
they activate two variables (the
multiplier and the accelerator) on the aggregate supply side.
Which leads to the expansion of investments in the various sectors of production within the economic activity, and
this happens in light of the
integrity of the general structure of economic activity and the
absence of imbalances,
which lead to different results.
In our structurally disordered economy,
despite the increase in aggregate demand resulting from the
increase in government spending over the past years and the
consequent increases in wages and salaries mainly for the government sector,
we did not witness an improvement in the national aggregate supply side.
On the contrary, that increase led to the atrophy of the productive sector as a result of For the loss of competitiveness towards imports,
which increased as a result of the rise in aggregate demand, which made the desired effect go to the economies of trading partners, given that
imports are considered one of the (elements of leakage) along with taxes and savings.
What we care about is consumer spending, which has grown significantly over the past years, and
this was reflected in the sales of the dollar window for foreign trade purposes, which reached an average of approximately (45) billion dollars annually.
To analyze the pattern of this consumption, it can be said that the first observations lie in the phenomenon of (simulation) Consumption patterns in economically developed countries,
which is a general phenomenon that is not limited to our economy only, but
is a problem diagnosed in the developmental economic literature, as
society imitates consumption patterns such as the tendency towards exaggeration in spending on tourist facilities such as
luxury restaurants,
travel for tourism purposes, and the
acquisition of valuables For the purpose of bragging and bragging, and
other things that show the image in a distorted way,
so we find, for example, luxury cars in miserable neighborhoods and poor services, as they drive on streets full of bumps and potholes, and
we find high demand for luxury furniture amid the deterioration of health and educational services.
Hospitals It is not suitable for patients to sleep.
Rather, we find some individuals owning cars with prices comparable to house prices, and
they live in a rented house and other examples.
We also find a construction worker who owns an expensive mobile phone at the expense of the going of that money, which is supposed to be gradually accumulated to turn it into an income-generating project.
We also find great interest in dining tables in a way that exceeds the actual need of the family, and
this is indicated by the statement of the Municipality of Baghdad that it is related (65%) of the garbage constitutes leftovers, and
among the complaints diagnosed is the
unreasonable volume of demand for consumer goods during the festive seasons and events, and the
role of the government and the monetary authority in exacerbating some of these phenomena such as failure to provide good health services, which prompted people The affluent and the less affluent to search for hospitals outside the country for hospitalization, the
cheap dollar policy and
support the demand for dollars for the purpose of travel and others.
Of course, the individual may fall behind those irrational practices in consumption, as a result of the lack of an investment environment that stimulates savings, financial speculation, etc.,
that is, an environment that stimulates the growth of demand for money for the purposes of hedging and non-consumer transactions, and
here lies the default on the part of the economic authority, which was supportive of the growth of phenomena referred to above.
The impact of such a pattern of consumption lies in undermining the capital accumulation,
which is the cornerstone of achieving development,
which explained the loss of revenues generated after the year of political change without any developmental impact on the economy, and prompted the desired effect in stimulating economic growth from the local economy to the trading partners.,
so we find the multiplier and accelerator factors working for them and consumer spending from our share, and
this explains the emergence of productive companies that allocate their goods for export only to the inside of our economy, and this is what happened in Turkey and Iran, for example, and
among the other implications is the level of economic dependence abroad as a result of the large demand for imports and others.
The duty of the economic authority lies in the use of tools (taxes, customs tariffs, and the exchange rate) to restore matters towards rationality in consumption, by imposing taxes on luxury activities such as
luxury restaurants and others, and imposing
large customs tariffs on luxury goods, such as luxury cars,
imported gold jewelry,
international brand clothes, and even
Telephone communications and others
to reduce the level of high demand for it.
As for the exchange rate,
it must reconsider determining its value and the
policies followed in marketing it in a thoughtful manner for the purpose of creating capital accumulation while providing stimulating reasons for saving.
https://alsabaah.iq/78447-.html
opinions 06/07/2023
Dr. Hamed Rahim
In our structurally disordered economy, despite the
increase in aggregate demand resulting from the increase in government spending over the past years and the
consequent increases in wages and salaries mainly for the government sector,
we did not witness an improvement in the national aggregate supply side.
On the contrary, that increase led to the atrophy of the productive sector as a result For the loss of competitiveness towards imports,
which increased as a result of the rise in aggregate demand, which made the desired effect go to the economies of the trading partners.
The macro analysis of demand included four main axes
(consumer demand,
investment demand,
government spending,
net trade balance), and
these axes, according to economic theory, affect economic growth rates positively, as
they activate two variables (the
multiplier and the accelerator) on the aggregate supply side.
Which leads to the expansion of investments in the various sectors of production within the economic activity, and
this happens in light of the
integrity of the general structure of economic activity and the
absence of imbalances,
which lead to different results.
In our structurally disordered economy,
despite the increase in aggregate demand resulting from the
increase in government spending over the past years and the
consequent increases in wages and salaries mainly for the government sector,
we did not witness an improvement in the national aggregate supply side.
On the contrary, that increase led to the atrophy of the productive sector as a result of For the loss of competitiveness towards imports,
which increased as a result of the rise in aggregate demand, which made the desired effect go to the economies of trading partners, given that
imports are considered one of the (elements of leakage) along with taxes and savings.
What we care about is consumer spending, which has grown significantly over the past years, and
this was reflected in the sales of the dollar window for foreign trade purposes, which reached an average of approximately (45) billion dollars annually.
To analyze the pattern of this consumption, it can be said that the first observations lie in the phenomenon of (simulation) Consumption patterns in economically developed countries,
which is a general phenomenon that is not limited to our economy only, but
is a problem diagnosed in the developmental economic literature, as
society imitates consumption patterns such as the tendency towards exaggeration in spending on tourist facilities such as
luxury restaurants,
travel for tourism purposes, and the
acquisition of valuables For the purpose of bragging and bragging, and
other things that show the image in a distorted way,
so we find, for example, luxury cars in miserable neighborhoods and poor services, as they drive on streets full of bumps and potholes, and
we find high demand for luxury furniture amid the deterioration of health and educational services.
Hospitals It is not suitable for patients to sleep.
Rather, we find some individuals owning cars with prices comparable to house prices, and
they live in a rented house and other examples.
We also find a construction worker who owns an expensive mobile phone at the expense of the going of that money, which is supposed to be gradually accumulated to turn it into an income-generating project.
We also find great interest in dining tables in a way that exceeds the actual need of the family, and
this is indicated by the statement of the Municipality of Baghdad that it is related (65%) of the garbage constitutes leftovers, and
among the complaints diagnosed is the
unreasonable volume of demand for consumer goods during the festive seasons and events, and the
role of the government and the monetary authority in exacerbating some of these phenomena such as failure to provide good health services, which prompted people The affluent and the less affluent to search for hospitals outside the country for hospitalization, the
cheap dollar policy and
support the demand for dollars for the purpose of travel and others.
Of course, the individual may fall behind those irrational practices in consumption, as a result of the lack of an investment environment that stimulates savings, financial speculation, etc.,
that is, an environment that stimulates the growth of demand for money for the purposes of hedging and non-consumer transactions, and
here lies the default on the part of the economic authority, which was supportive of the growth of phenomena referred to above.
The impact of such a pattern of consumption lies in undermining the capital accumulation,
which is the cornerstone of achieving development,
which explained the loss of revenues generated after the year of political change without any developmental impact on the economy, and prompted the desired effect in stimulating economic growth from the local economy to the trading partners.,
so we find the multiplier and accelerator factors working for them and consumer spending from our share, and
this explains the emergence of productive companies that allocate their goods for export only to the inside of our economy, and this is what happened in Turkey and Iran, for example, and
among the other implications is the level of economic dependence abroad as a result of the large demand for imports and others.
The duty of the economic authority lies in the use of tools (taxes, customs tariffs, and the exchange rate) to restore matters towards rationality in consumption, by imposing taxes on luxury activities such as
luxury restaurants and others, and imposing
large customs tariffs on luxury goods, such as luxury cars,
imported gold jewelry,
international brand clothes, and even
Telephone communications and others
to reduce the level of high demand for it.
As for the exchange rate,
it must reconsider determining its value and the
policies followed in marketing it in a thoughtful manner for the purpose of creating capital accumulation while providing stimulating reasons for saving.
https://alsabaah.iq/78447-.html
