Home > Taxation > Egypt’s economy is collapsing. Don’t blame yourself.

Egypt’s economy is collapsing. Don’t blame yourself.

Egypt’s planning minister, Ashraf El Arabi, said this week Egypt only had enough foreign exchange reserves for another three months. Given how dependent Egypt is on imports, that means the economy will collapse soon if drastic changes are not made.

I hope Egyptians understand when the economy collapses whose fault it is. It’s not Egypt’s fault. It’s not your fault. It’s the state’s fault. It takes your money and spends it without asking. It borrows money and forces you to pay for it. You are the economy. When you pay for the state’s actions, which you do every day, it’s the economy that suffers.

The economy as a whole would not be on the point of collapse if not for all these ridiculous economic policies. Gas would cost more but there would not be shortages, except for individuals who could not afford it. Business would be free to operate and create wealth for everyone. And you would not have to worry if the central bank has enough money to cover what you want to buy. But that is not the way the “national economy” works. When the state screws up, the people suffer.

In this way, we can see the state is, among other things, a vehicle for eliminating responsibility from the powerful and passing costs on to the weak. They will never tell you that, of course. Look at how former finance minister Hazem El Beblawi put it. “[T]he real problem is that Egypt lacks the domestic resources that would allow the government to deal with anticipated shortfalls.” Egypt does not lack domestic resources. It is being strangled by economic policies. Why would we want the government to deal with “shortfalls”? When an individual makes a mistake, he or she pays the price. If the government takes control over something and it goes wrong, the entire country suffers.

But that is the system we live under. The state confiscates and destroys wealth, and you pay.

Egypt economy suffer collapse dieThe only hope for the economy is to secure more loans and raise taxes, which will simply suck more money out of the pockets of the people. But ideally, the economy will die and be replaced by freedom.  Let black markets and mutual aid reign. Secede from this system like the people in Mahalla El Kobra. End your dependency on the state and stop paying for the elites’ crisis.

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