Things work differently here. Like the economy. It too is in the toilet. And like the switch that flushes the toilet before it turns on the light, no one has been able to explain to me much about the Hungarian economy other than it is really bad. Before it was just bad. Sort of like Hungarian currency, the forint.
But you can’t blame Hungary for the state of the global economy. Or can you? If you are one of those people who blame the current situation on the free market principles of the Chicago School of Economics, with a little stretch, you can blame Hungary. The Chicago School was pioneered by Milton Friedman, an American of Hungarian descent. I know it’s a stretch but so is a switch that flushes the toilet before it turns on the light.
I don’t know enough about economics to be placing any blame anywhere. And I don’t feel badly that I don’t know much about economics because the economists don’t seem to know much about them either or we wouldn’t be in this mess.
But with the forint at record lows, doesn’t Hungary have an opportunity? Doesn’t that create an ideal situation to increase exports? Canada benefited for decades from a relatively weak dollar. Mind you, a person practically had to take out a second mortgage on their house to afford a vacation to the United States, but that was OK because they were giving out mortgages to anyone with a pulse and a pay cheque.
So to where can Hungary increase its exports? I’ve emailed all my friends to see if there is much interest in paprika or root vegetables, but the response has been lukewarm. Some haven’t replied at all.
What else does Hungary manufacture? Apparently about 50% of the GDP is services. However, I think that’s code for government and that’s not a very exportable commodity. Go to any country on the planet and you’ll find a good portion of the population who would love to export their government.
But what does Hungary export more on a per capita basis probably than any other country in the world? Intellectual capital. Hungary should harvest the intellectual capital before they export it. I’m no economist, but I know that when your citizens go somewhere else to get rich, that’s where they’re going to be paying taxes. And creating jobs.
I’ve heard people say again and again that, if you’ve got half a brain, you’d leave Hungary. I agree. People with half a brain should leave. They’re the ones giving us switches that flush the toilet before they turn on the lights.
